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Housing stocks are booming in 2014.
The iShares US Home Construction ETF
(NYSEARCA:ITB), which is more housing-centric than the better-known SPDR S&P Homebuilders ETF
(NYSEARCA:XHB) is now up 5.6% after being ignited by this morning's better-than-expected January new home sales data.
However, I wanted to take a bigger-picture look back at housing's relative performance.
Below you'll see two charts.
They track the SPDR S&P 500 ETF
(NYSEARCA:SPY) (bar chart) against the relative performance of housing (blue line), which I calculated by dividing ITB by SPY.
The first chart tracks the relationship year on a daily basis:
Click to enlarge
This second chart shows it on a monthly basis going back nine years:
Click to enlarge
Obviously, we're not remotely close to the bubble levels of 2006.
But note -- we're also not at levels seen in late 2012.
No positions in stocks mentioned.
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