By Sober Look
Both the equity and the credit markets are betting on US housing recovery.
Equity: This chart compares total return for the PHLX (Philadelphia Stock Exchange) US Housing Sector Index (companies with focus on US residential housing) with the S&P500 index. The PHLX YTD outperformance is 19%. With an estimated PE of 30-35, a great deal of growth is priced in and the group now feels overbought.