Who says the Dow Jones Industrial Average has anything to do with the outlook for the housing market?
I am certainly skeptical, and get downright annoyed every time someone would refer to the DJIA result that day as a litmus test for some sort of national mood.
Yet people seem to be feeling a little better about things (the economy/housing) today than a few weeks ago. Here’s a chronology of cause and effect (DJIA rises and home sales rise) conveniently edited to make my point:
- DJIA jumps 400 points
- Stewart’s ‘Daily Show’ Chastises CNBC’s Cramer
- March Madness begins, lots of feel good upset stories
- Madoff goes to jail
- Friday the 13th occurs in 2 consecutive months
- The Obamas plant a vegetable garden
- AIG bonus money is partially recovered
- AIG becomes AIU which sounds like IOU
- House passes 90-Percent Tax on AIG Bonuses
- Geitner announces revised Treasury plan to positive reviews
- DJIA jumps nearly 500 points
- Existing-home sales post surprising 5.1% gain
First of all, this has been one heck of a busy news cycle and the path from DJIA to rising home sales is obvious.
Secondly, I need to splash some cold water on my face and get back to work.
Aside: we don’t need bipartisanship.