Builder confidence tied to stock market

Economists say there is a
correlation between the National Association of Home Builders’ builder
confidence and one-year lagging returns of the Standard & Poor’s
500 stock market index. Between March and April, the builder confidence index rose 56
percent, to 14 from 9, which might be a good sign for stocks, but
economists say until the May and June numbers are revealed, it will be
impossible to know whether the rise in confidence is a trend or a fluke. “This is a very encouraging sign that we are at or
near the bottom of the current housing depression, said David Crowe,
NAHB’s chief economist.