Interesting Take on Lumber

Our friends over at the Global Macro Monitor posted some interesting information on lumber prices. As the chart shows, prices have been moving up recently and have broken out to new highs. The post mentions that the catalyst for rising prices is likely an improving outlook for the economy and for the housing sector.

We would caution that this may be a different animal this time around. Many assets are moving up in value recently, especially commodities. We would not be willing to suggest that this rise in prices is anything more than some inflationary pressures which are now being seen in many sectors.