AS WE START A NEW DAY ON WALL STREET …. MAY THE INVESTMENT GOD’S BE WITH YOU ………          

Back in ’12, as trillions in unorthodox capital, credit & liquidity began to drive massive speculation (just like Bubble 1.0), income required to buy began to surge, with prices, shooting above median HH income (boxed in yellow).  Meaningful sales growth with this affordability backdrop is impossible.

Now, in ’17, the end-user purchasing power & house prices have never been more diverged from the multi-decade trend line and a mean reversion – via surging wages, new era exotic loans, plunging rates, and/or falling house prices, as speculation ebbs – is inevitable.