I found this chart to be absolutely fascinating . . .
Graphic courtesy of Barrons
There will be an eventual reversion to the mean — and that means Commodities and Real Estate will correct, and Stocks will rally.
But the key word is eventual. One needs to consider much longer term charts, and watch interest rates to know approximately when.
My guess (and its only a guess) is that stocks become very buyable in 2007/08, while Real Estate purchasers — at least those buying with cash — maybe a short time after . . .
The Bionic Recovery
Interview with Jim Paulsen, Chief Investment Strategist, Wells Capital Management
Barron’s MONDAY, OCTOBER 17, 2005