Saturday, April 25, 2015

U.S. Stocks: Timber! | Seeking Alpha

U.S. Stocks: Timber! | Seeking Alpha



Eric Parnell has written an outstanding article on how the price of lumber has fallen steeply while the stock market continues to rise.  In a true strong economy, lumber should be rising along with stocks.  So, the decline in lumber could be a sign that stocks will soon follow.  Eric mentioned many lumber and construction stocks if you want to bet on a housing turnaround, but I am buying more of a housing short stock (SRS) myself because I think the economy is stalemated, and rising interest rates will cause housing to fall.  New home sales have also dramatically declined.

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