As I recall back in 2007 or so there was a moment when the banking stocks were making new highs while the housing stocks had long since died.
Needless to say the rest in 2008 became history.
So are we there again? Stuck that “history repeats” thing again? Or is it different this time?
At moment the answers are out. Home building stocks are down on the creep up in interest rates and the overheating in the retail housing markets and the current pullback in the general market but maybe not out yet since we are still in a bull market overall. The banks are so far holding near the highs.
I bring this up just as a heads up.
Watch the tail – it will tell if the dog will die.