U.S. Building Permits have historically acted as a leading indicator of economic slowdowns.
Each time construction activity cooled — in the 1970s, 2007, and again post-2021 — deep S&P 500 drawdowns followed shortly after.
Today, permits have fallen to 1.33M (−2.3%), while the S&P 500 remains near all-time highs with a minor −1.6% drawdown.
📊 Historically, this kind of divergence doesn’t last long.
When the real economy starts to weaken, the market usually follows.
👉 The housing cycle whispers before the market screams.
Each time construction activity cooled — in the 1970s, 2007, and again post-2021 — deep S&P 500 drawdowns followed shortly after.
Today, permits have fallen to 1.33M (−2.3%), while the S&P 500 remains near all-time highs with a minor −1.6% drawdown.
📊 Historically, this kind of divergence doesn’t last long.
When the real economy starts to weaken, the market usually follows.
👉 The housing cycle whispers before the market screams.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.