Capital Market Review Q2 2013

History implies that the peak growth rate in the total housing related spending should be 2.5 times the drop experienced in the previous downturn. This works out to be a peak growth rate of +15.5% in the current business cycle, which is nearly a six-fold increase from its current growth rate. With a current weight of approximately 17% of GDP, the arithmetic tells us we should see and an additional 220 basis points in annual real GDP. Read more…