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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Qualified Opinion who wrote (90717)	9/27/2007 11:34:58 AM
From: Smiling Bob	Read Replies (2) \| Respond to of 306849

It's pretty easy to see where the stocks should trade in a more normal cycle vs home sales. HBs were never high growth stocks. They've always traded mostly like utilities, with occasional earnings blips while paying dividends. They're mostly flatliners. Up until recently, I'd guess home sales numbers have had marginal effect on stock prices. Prior to this bubble and current pop, I can't remember any time where stocks have reacted much to home sales numbers or related data. We've never had a boom like this one, so we will have a bust that matches it at least. Factoring in the magical means of how the bubble was created and the consequences being faced as it pops, we're looking at some long term pain for HBs