house prices might tell us where we are headed, page-10

If you want to study US house prices then look at

http://www.nahb.org/generic.aspx?genericContentID=530

Although not perfect, it is often been a 12 month leading indicator of the US stockmarket.

Look at the high of Oct 1986 and low of Nov 1986.

Look at the high of Dec 1998 and low of Oct 2001.

We now have lows in Nov/Dec 2008 so far.

It doesn't suggest much bullish stockmarket activity for another 12 months and that is presuming the numbers don't get worse.