The skyrocketing price of the lumber market right now is adding substantial costs to the budgets of homebuilders in America, and forget about any of these costs being properly hedged. This makes existing homes more valuable because a rising tide lifts all boats from an overall market perspective, and this concept is manifesting itself quite nicely in a red-hot real estate environment presently.
We delve into the fundamentals behind the rise in lumber prices, as well as taking a more detailed look at the technicals of the lumber futures market in this financial markets-oriented video.
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Courtesy of John Mark Gray, John has an MA in Philosophy and an MBA in Business. He has worked in academia, Fortune 500 companies, consulting, and financial markets. He has written many articles and white papers on financial markets and economics. He has a background in Logic & Game Theory and enjoys playing Chess and Poker in his spare time.
The views and opinions expressed herein are the author's own and do not necessarily reflect those of EconMatters.
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