Eerily Reminiscent of the 2000s Rally

In recent days, I have been interacting with real estate agents who are informing me about how "on fire" the real estate market is in Southern California. Checking the value of my own home on Zillow, I found it up 27% in the last year -- and we don't even live in the really "hot" areas of Los Angeles, such as Malibu. My consternation grew Thursday during an idea lunch with my "cabal." (I'll have more on that Monday, including their best ideas -- I report on this group regularly). One among the cabal has reported that he is speculating in Hamptons real estate in New York, while another has said he is structuring a deal to put up spec townhouses near San Diego.

After years of Federal Reserve monetary promiscuity, I am constantly wondering when and how excess liquidity will make its presence known -- in which asset classes, and to what magnitude. A chart of the S&P 500 provides part of the answer, and perusing Zillow supplies the remainder. During our lunch my mind drifted back to the last time our economy crashed, and when a Federal Reserve chairman then unleashed massive liquidity to protect "the system." Those 2002 actions resulted in a multiyear stock market and housing rally. Is this "Groundhog Decade," with the same pattern repeating over and over each time I wake up?...613 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.