Real Trees Don’t Grow To The Sky
Our Carol K. starts her new procedure tomorrow to fight off her AML. Come on, world, let’s will her to heath! You go, girl!
Check out the “spectacular” (ht/ CK) roundtrip in the price of lumber this year. After rising over 160 percent from January to May, Timber!
The commodity has fallen 70 percent and is now below its breakout price.
The pulp flop has brought out those preaching the the “D” word and point to lumber as a sign of deflation. O.M.G.!
Me thinks the price action reflects what I used to tell my young traders, who couldn’t resist chasing prices to the moon.
“Trees don’t grow to the sky,” an old German proverb translated from “Bäume wachsen nicht in den Himmel, which suggests there are fundamental and valuation limits on how high asset and commodity prices can go.
Given the speculative zeitgeist that has hijacked global society, lumber’s microstructure and it’s industry idiosyncrasies made it a good story for speculators to run it up, and run it up they did.
You know, the inelastic supply curve thingy, the lead time to get lumber to the market is long, like it takes 200 years to grow a Redwood tree, blah, blah.
Blood Clotting In Speculative Assets
Spec assets are like blood, folks, if they stop flowing (from lower left to upper right), they tend to clot, and many times kill the patient.
Something I tried explain to my buddy’s 16-year old son a few months ago when Doggie Coin was trading north of $.50 (now 60 percent lower). I quickly experienced a big beat down and he lectured me, “What do you know about the space?”
This kid knew nothing, and could care less about the story of crypto currencies: going to replace the dollar and the medium of exchange, scarcity value, etc. He was sucked in simply because the price was moving higher. Stories, themes, and memes are great fodder for the financial media to explain price action but not to sustain prices.
We suspect many others are about to learn about the “speculative space” once monetary policy reverses, if it ever does or can.
Source: https://global-macro-monitor.com/2021/07/14/real-trees-dont-grow-to-the-sky/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
LION'S MANE PRODUCT
Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules
Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.
Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.
