You haven't been watching the markets lately. News on US housing has been driving the world markets for the last month or so. It impacts retail, financial companies, techology stocks. Shoot, even defense stocks have been driven lower solely on negative news in our housing market. Stocks in China, Japan, and Europe move on our housing market.
LOL. I haven't been watching the markets? How would you know?
This is a cycle like any other. Stocks go up, stocks go down. Same with houses. The long term trend is up and this is a buying opportunity for those who kept some powder dry.
That's the herd panicking. A downturn in defense stocks in reaction to a collapsing housing market is irrational panic on the part of the herd. There is little real connection between the two markets. You make money by observing the herd and generally doing the opposite. When the herd realizes its mistake, the defense stocks will recover and money will be made by the anti-herd.