hoover

Case-Shiller's Recent Strength: It's Not Just Seasonality

I'm skeptical whether we've reached a point of stabilization in housing prices. But, I do believe there is more inherent value in housing than the market is currently indicating. Housing is down to the level it is today only because people can't pay their mortages. Stocks, by contrast, are overpriced because buyers have lost the sense that stocks have to eventually produce real net returns, like profits and dividends, rather than phoney accounting entries, more debt, and glowing reports by paid cheer leaders. On Main Street things look dismal, which is probably the most accurate reading of the real economy. Just some thoughts.