Are Markets Leading Indicators?

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

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Chart via WSJ

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

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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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