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Housing Market Is Bottoming Out

Investor Sentiment and Housing Market

Housing market stats is bottoming out according to investor sentiment based on the early 80s, inline with The Striking Similarity Of Carter's 1978 Economy to Today posted here a year ago. 30 years of FNM and the Dow are in agreement with the most similar time periods being 1982 and 1983. Click on the symbols, reference the charts to the immediate right of the current chart in red. It seems in alignment with Unsold U.S. homes still at their highest since 1982 and abroad Biggest house price fall since 1983. Perhaps the start of a new cycle.

IBM Charts Are Eerie

A Heavy Dow Component

Based on sampling 30 years of historical performances similar to today, IBM isn't well from an investor sentiment standpoint. Sampling 1 to 12 months price charts leads me to speculate a tech correction is casting. It may seem absurd as with AIG and JPM (1, 2, 3 , 4 , 5) when most pundits were reciting in unison all is well. Reference the 1 2 3 4 5 6 7 8 9 10 11 and 12 month sample charts of IBM.

As for the Dow, performance projections remain the same since December of last year - poor.

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Worse June Since Vietnam War

Vast Difference in Context Between War and Famine

The Bloomberg article by Michael Patterson, "U.S. Stocks Tumble, Sending Dow to Worse June Since Depression" has many discussing its implications. The single data point may have drawn some to conclude the markets are performing similar to The Great Depression era, and arriving at the wrong context. In contradiction, utilizing image recognition algorithms, the price series that is most similar from 80 years is the Vietnam War era, not just for this month but the last several months. Vast difference in context between war and famine.

Reference the Dow price charts below, the red charts are the present, and the gray are historically similar price charts (1965 and 1968).