This could very well be the case - we'll have to see. Just curious if population growth counts for anything
Look at the SOX (semi's) index... Yesterday KLAC (back dating options), today LRCX, who's next ? Just hope you don't own a stock that gets investigated....
================ Its strange but true; QQQQ has had trouble staying above its 50 day moving average all year to date Actually thought SPY & ES would finish eod higher today; & 1212.2 ES looks more likely than 1313 direction. Its more bearish than DIA, YM Might not help GM, & some oil/gas stocks got slaughtered in 87; but oil & gas dividend stocks still uptrending
Well technically semi's, biotech, healthcare did not control this rally. So forth the commodities, and materials as well as industrial machinery and goods led this rally. Thats the reason DOW was rising and Nasdaq pretty much stayed on the same level.
Thats assuming that income is directly proportional to affordability - which it is not, especially in coastal areas. Other factors like interest rates come into question. What you've described is a housing environment that lends itself to speculation, not hedging (think of what market participants hedge versus which ones speculate... their motives are not subjective). Taken in context, the basis behind rental price is subjective and usually not supply driven: there will always be cheap places to live. In general renters are not hedgers and only a portion of buyers are speculators; becuase of this, classic forces of supply and demand do not necessarily impact rental/housing price, more often tha not income and familial needs do. From my experiences, what people are willing to pay for a rental is purely subjective based on personal needs.