Exponential Trend Failures of the Day: Stock Market vs. Real Estate

The following chart shows nonfinancial corporate equities divided by household and nonprofit organization real estate.


Click to enlarge (this chart is larger than normal to show extra detail).

10 Things We Know:

1. From 2009:Q1 to 2014:Q2, the ratio grew exponentially at 10.4%.
2. As of 2014:Q2, the ratio was 2 STD above the long-term average.
3. Since 1952, the ratio's experienced two very serious trend failures.
4. In 1969, we put stocks on the moon.
5. The next decade was not kind to investors.
6. In 2000, we put stocks on the moon.
7. The next decade was not kind to investors.
8. In 2014, we put stocks on the moon.
9. The future's so bright, I gotta wear shades.
10. This is not 1982.



Source Data:
St. Louis Fed: Custom Chart