Value Investing Strategy (Strategy Overview)
Allocations for September 2023 (Final)
Cash TLT LQD SPY
Momentum Investing Strategy (Strategy Overview)
Allocations for September 2023 (Final)
1st ETF 2nd ETF 3rd ETF
Home Prices and the Stock Market
September 13, 2023 • Posted in Real Estate, Strategic Allocation
Homes typically represent a substantial fraction of investor wealth. Are there reliable relationships between U.S. home prices and the U.S. stock market? For example, does a rising stock market stimulate home prices? Do falling home prices point to offsetting liquidation of equity positions. Do homes effectively diversify equity holdings? Measurements are:
- Monthly levels of the non-seasonally adjusted S&P/Case-Shiller U.S. National Home Price Index (Home Price Index) during January 1987 through June 2023 (36.5 years), with release lag about two months.
- Annual median sales prices for existing homes pieced from from RealEstateABC.com [no longer available], National Association of Realtors and Federal Reserve Bank of St. Louis during 1968 through 2022 (55 years).
- Annual median sales prices for new homes during 1963 through 2022 (60 years).
Using these sources and contemporaneous monthly levels of the S&P 500 Index during January 1963 through July 2023, we find that:
Please log in or subscribe to continue reading...
Gain access to hundreds of premium articles, our momentum strategy, full RSS feeds, and more! Learn more