What’s bad for America is sometimes good for the market.
The coronavirus pandemic will cause many cash-strapped Americans to sell their homes, flooding the market with excess supply.
Longtermtrends aggregates long term high-level financial data and displays it. I find looking at these charts gets me away from the day-to-day "oh the stock market is down" and towards thinking about what happens when you invest money over many years or decades.
Before the real estate market imploded between 2007 and 2008, median home prices were more than 4.5 times median incomes—one of the factors leading to the subprime mortgage meltdown.
We also believe we are currently nearing the end of a rising cycle in both Stocks to Commodities and S&P500 to Earnings ratios, suggesting a downward/sideways trend in the US stock market will continue while commodities attempt to form a longer-term momentum base.