Be watching this major change

It could show us a lot about the future of the market
Hey there!

Happy Wednesday!

A big change is happening in a much-talked about sector right now. You have to see this chart!

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As I'm sure you know, lumber prices have been through the roof in recent months, causing huge cost increases in the housing market and many other industries.

It was a big topic of concern in the markets. As Yahoo! Finance put it, "Through the spring, the surge in lumber prices became the market narrative as it covered every pandemic-related trend: Labor shortages, shipping constraints and housing demand — all in one place."

But in that same article, they report some really interesting (and quite frankly, pretty exciting!) news:

Lumber futures are WAY down.

This is important, because it backs the Fed narrative that inflation could be "transitory."

In theory, we might be looking at a series of short-term spikes in prices, almost similar to a short squeeze, in markets and commodities as they open up.

Essentially, as the world opens, demand is going to heavily outpace supply, but only in short bursts.

So goes the most positive, bullish narrative. And the lumber futures chart is giving us hope to believe it might be true.

Of course, the Fed is holding a press conference tomorrow afternoon. So it's a really important time to pay attention and hear what they have to say regarding inflation.

We'll see if their announcements seem to agree with what the lumber market is teaching us.

It'll be interesting to watch!


Chat Soon,

Markay
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