2 Fast 2 Furious?

The Housing and COVID Recessions had the same prescription: lots of fiscal and monetary stimulus. If the stock market results are similar, then it looks like the stock market may take a breather soon.

Here’s a comparison of the returns on the S&P 500 from the bottom of the housing recession and the bottom of the COVID recession.

You can see they tract nicely until the last month or so as the current market continues higher while the Housing recession recovery took a pause.

No two markets are the same, but this suggestions the second half of 2021 will not be as bullish for stocks as the first half.