Lumber keeps tumbling. Lumber is a very important commodity because it leads trends in the housing sector by several months.
The prolonged decline of lumber spells trouble for the housing industry, as I have been discussing for some time in my The Peter Dag Portfolio.
But this is not the whole story. The housing industry is a very important sector of the economy and weakness in housing is a major headwind for the economy.
Bond yields cannot rise with the economy downshifting (there are other forces at work not discussed here). They may even offer some attractive capital gains.
George Dagnino, PhD
Editor
The Peter Dag Portfolio
Since 1977
Disclaimer. The content on this site is provided as general information only and should not be taken as investment advice nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility. The Peter Dag Portfolio
Since 1977
STRATEGIC INVESTING FOR UNCERTAIN TIMES.
Learn how to manage your portfolio risk and sleep comfortably. Improve the certainty of returns by taking advantage of business cycle trends. Learn to use simple hedging strategies to minimize the volatility of your portfolio and protect it from downside losses.
You will receive your user id to access 2 FREE issues – and all the previous ones - of The Peter Dag Portfolio. Email your request to info@peterdag.com. New subscribers, please.
FOLLOW ME ALSO ON TWITTER @GEORGEDAGNINO FOR MY LATEST VIEWS
No comments:
Post a Comment