Less than a week ago, we published an article explaining that the ongoing “Supply Chain Collapse Leads To Lumber Frenzy, Soaring Home Prices.” Since then the lumber buying frenzy has gotten even more out of control, with prices surging another 12%, and as Bloomberg’s Aoyon Ashraf points out, “lumber hasn’t had a down day since March 26 and keeps hitting all-time highs with few signs of stopping.” In an amusing comparison, Ashraf also notes that while Lumber futures have climber a staggering 58% in just the past month since bottoming on March 16, “Bitcoin has fallen 3% and S&P 500 returned only 5% over this period” (of course, any comparison that is not goalseeked and stretches further beyond just a few weeks will show bitcoin trouncing lumber, but we get the idea).
Ashraf then echoes what we said last week, namely that “the reason for lumber’s meteoric rise is simple: low supply and surging demand. Slow ramp-ups at sawmills, trucking delays and worker shortages all are feeding into it.” The Bloomberg reporter than boldly suggests that going long lumber is a safer choice than bitcoin:
Short supply of trees….kinda like we will shortly hear (prior to memorial day) there is a short supply of crabs. Dont laugh, the script demands this.
Good time to sell an existing home
What did we expect with Biden Now In Charge ….Get ready It Will Get Much Worse