Financials and Home Construction going higher

 

Today we're going to focus on current asset prices relative to their prior cycles highs.

The first one is a great example. Here is the US Financials Index Fund overlaid with the US Home Construction Index Fund.

As we all know, both of these peaked between 2006-2007 and went on to completely collapse and bring the rest of the market down with them:

image

After failing at those same highs in 2018 and 2020, prices ultimately broke out and finally went on to make new all-time highs.

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