The relationship between two of the nation’s greatest investment arenas, the housing market and stock market, is much more complex than most Americans would expect. In fact, a recent study by CXO Advisory Group, a popular economic analyst company, found that there is no direct, causal relationship between the two—instead, they affect and are directed by the same macro and microeconomic factors. More specifically, they both follow the trends of an economic cycle, which represents the stages of expansion and contraction of the nation’s GDP.
