Are Markets Leading Indicators?

April 7, 2009 11:30am by Barry Ritholtz

Not according to this chart: How do you explain the Dow (and SPX and Nasdaq) lagging behind the peak in Housing and Banking?

Chart via WSJ

Its just another example of misplaced faith and deification of equity markets. So much for the wisdom of crowds . . .

Source:
From Bubble to Depression?
STEVEN GJERSTAD and VERNON L. SMITH
WSJ, APRIL 6, 2009
http://online.wsj.com/article/SB123897612802791281.html

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