Submitted by CaptainGolden t3_10o05n9 in wallstreetbets
[removed]
Submitted by CaptainGolden t3_10o05n9 in wallstreetbets
[removed]
Bad news green , good news red
Mmm usually but demand for lumber comes from housing starts which comes from the housing market so a drop in the housing market would mean less demand and therefore lower prices.... right?
Maybe they are anticipating the need for bunkers
Naturally. My pardon for the obvious oversight.
Lol it’s possible. Not quite sure to be honest , but that is almost directly in tandem with fuel price increases over the same time span
bull trap
Lumber follows home construction, which hasn't really weakened that much. Not to mention, people still have jobs, and are earning more in nominal terms, and sometimes even real terms.
Some might even note that lumber is a leading indicator of economic expansion, which, in this case, would translate to ... inflation. Yup. That soft landing might be getting more unlikely now.
Market is irrational shocker
Generally, commodities rise when USD is weaker...you can see that prices for corn, soy, copper etc have been rising recently as the dollar has been falling
>Some might even note that lumber is a leading indicator of economic expansion, which, in this case, would translate to ... inflation. Yup. That soft landing might be getting more unlikely now.
I would say that the middle class is getting less wealthy as of recent. Inflation is up, debt is through the roof, consumer confidence seems low, interest rates are high, and those nice money packages people got during covid is running out. I don't see why you would want to buy a house or make a house in this market. But yeah, let's hope for the best for that soft landing...
It should be noted that lumber plummeted recently. https://tradingeconomics.com/commodity/lumber
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