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FOR YEARS, THE HOUSING MARKET moved in tandem with the stock market. Recently, though, that relationship has hit a rough patch, as the returns on each of those investments moved in opposite directions.
"During the [stock market] boom, a lot of people looked at housing's opportunity cost," explains Scott J. Brown, chief economist for equity research at Raymond James & Associates in Florida. "If you put your money in the housing market, you saw gains of 5 percent to 10 percent per year, or you could [have] put your money in the stock market and [seen] gains of 10 percent to 20 percent. Now the perception has turned around--'Why would you put your money in that risky …
Source: HighBeam Research, On the mend: will 2003 restore that traditional relationship between...