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Housing Stocks: Taking a 20,000-Foot View of Relative Performance
From the Buzz & Banter: Housing is not at bubble levels quite yet.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MV PRO+.

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.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Housing Stocks: Taking a 20,000-Foot View of Relative Performance
From the Buzz & Banter: Housing is not at bubble levels quite yet.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MV PRO+.

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.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Housing Stocks: Taking a 20,000-Foot View of Relative Performance
From the Buzz & Banter: Housing is not at bubble levels quite yet.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MV PRO+.

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.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
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