1 / 14

The Housing & Stock Market Relationship

The Housing & Stock Market Relationship. Aseem Sharma , Calvin Kai, Nadine Lazzara , & Shaima Abdalla. Introduction . The Relationship. Have stock prices and real estate prices moved in unison historically?

ronald
Download Presentation

The Housing & Stock Market Relationship

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. The Housing & Stock Market Relationship Aseem Sharma , Calvin Kai, Nadine Lazzara , & ShaimaAbdalla

  2. Introduction

  3. The Relationship Have stock prices and real estate prices moved in unison historically? National Association of Home Builders (NAHB) Housing Market Index (HMI) vs. S&P 500 Index The NAHB Housing Market Index behaved as the leading indicator for the S&P 500 Index by 12-15 months with an 80+% correlation between 1998 and 2005.

  4. The Relationship CXO Advisory study conducted using annual median home price data and comparing it to the S&P 500 Index Low correlation ranging from -0.30 to 0.12 In the past 43 years there was no contemporaneous relationship established

  5. Sweet Suburban Dream

  6. Lend me more - Subprime Mortgage

  7. Shake in the Finance Market

  8. The Black Week

  9. Global Relationship S&P Europe 350 France England Portugal

  10. Global Relationship Hong Kong Japan China S&P Asia 50

  11. US Housing Market Outlook • Is the housing market starting to bottom out? Or is it declining further? • Justification for market turnaround: • Fourth consecutive month rise of the S&P/Case-Shiller 20-city home price index. • Increase in home sales. • Justification for a further decline

  12. Vanguard Health Care (VHT) Conservative Expected Return: 3.27%

  13. Conclusion • Over the last decade, the two markets have had a positive correlation • When approaching the issue over a longer period, research doesn’t indicate any definite correlation • Presence of several other factors that effectively influence the two markets

More Related