Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Global Macro Monitor
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Real Trees Don’t Grow To The Sky

% of readers think this story is Fact. Add your two cents.


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/


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.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.