Home Prices and the Stock Market
Q: Does your home price hype cycle theory apply to the stock market?
A: We’ll find out next week.
There was, in fact, a headline on the front page of The New York Times on Sunday, October 12: Those with a Sense of History May Find It’s Time to Invest. To my way of thinking, this is the rough equivalent of The Worst is Over. As you know from my previous post, when The New York Times reports the worst is over, the worst is just beginning. It is entirely possible that the stock market continues to drop sharply next week.
Consider another unattributed article from the Times on the same day. This one was quite clever, comparing today’s news to actual quotes from 1929, just moments before the stock market crash. Here are some excerpts from the piece:
From a “Wall Street Analysis” by Thomas C. Shotwell in “The World Almanac for 1929″:
The market is following natural laws of economics and there is no reason why both prosperity and the market should not continue for years at this high level or even higher. MORE →
Michael A. Kupritz, GRI, MBA has more than twenty years' experience buying, selling, and renovating homes and is Principal Broker of The Kupritz Group, a full-service, discount real estate brokerage in Baltimore, Maryland. Although you may not be able to tell from this blog, Mike has a degree in writing from The Johns Hopkins University. He also earned an MBA in business strategy and information technology from the University of Maryland's Robert H. Smith School of Business. Reach him directly by writing to makupritz at this domain.