Index Impairment

While the NAHB Housing Market Index of builder sentiment is at 69, which is not bad, it’s fallen from a peak of 90 in 11/20. Since 1985, and the start of the index, three of the four times it’s declined 20 points or more, regardless of the initial value of the index, a recession has followed. This time could be different, or it could be four out of five!