According to Jonathan Miller, very little:
The Stock Market Corrected, What Does It Mean For Housing?
First: the stock market is not the economy.
Second: I’ve never been able to credibly correlate housing prices and the Dow Jones Industrial Average with housing prices.
Third: for a brief period I was able to show some vague distant correlation in Manhattan sales and the index, but it hasn’t come close in a while.
Fourth: Focus on jobs and compensation and types of compensation (i.e. cash v. deferred).
All you need to know is that it is an important economic engine for the NYC economy, providing 23% of total wages with 5% of the jobs. And each securities industry job supports 2.5 NYC private sector jobs.
Anything more than that is beyond my comprehension. One thing I should note is that the economy itself appears much more detached from the housing economy in this cycle. This makes the observation of good economic news more confusing than ever – i.e. very low unemployment.
