WOOD Flirts With Major Resistance Level
Optimism on Wall Street appears to be slowly fading away as major equity indexes haven’t been able to keep up with last week’s bullish momentum. Since the broad-based rally last Friday, price action has been lackluster on the equity front as resurfacing “fiscal cliff” woes have once again opened up the doors for profit-taking. Economic data releases remain mixed, with October durable goods orders data coming in flat while consumer confidence is showing signs of minimal improvement. Amid the looming uncertainties, precious metals have offered little to no refuge, prompting savvy traders to look to other corners of the commodity market for opportunities [for more economic news and analysis subscribe to our free newsletter].
Timber Catches Fire In Sandy’s Wake
The past week has seen a number of factors combine to push timber prices and forestry stocks higher, with the most notable force coming from Hurricane Sandy. The superstorm wreaked havoc on the East Coast, as its destructive path reached 1,000 miles across, leaving millions of homes and businesses damaged and powerless. Estimates of the damage have come in at a staggering $50 billion, making Sandy the second most expensive storm in U.S. history, behind Hurricane Katrina [for more timber news and analysis subscribe to our free newsletter].
The Largest Private Landowners in the U.S.
Buying and owning hard assets like farmland and timberland has been a popular investing method for many years. Unfortunately, it is too costly and difficult for the average retail investor, so it is often left to those who have access to a significant capital base. For those who can invest in land, it can often be one of the best investments you will ever make, as the potential for profit is quite large [for more commodity news and analysis subscribe to our free newsletter].
Schiff: The Fed Wants To Inflate Housing
Renown and rather outspoken investor Peter Schiff has taken a shot at the Fed in his most recent statements, as he accuses them of trying to inflate the economy. To be specific, Schiff thinks that Bernanke and company want to inflate the housing bubble, which burst in 2007 and had a devastating impact on our economy. “But you can’t blow up a bubble that has already burst. It has too many holes” said Schiff [for more inflation news and analysis subscribe to our free newsletter].
Timber Set to Soar Says Jeremy Grantham
Jeremy Grantham, famous for co-founding the Grantham Mayo Van Otterloo (GMO), has made a series of forecasts that investors may want to pay attention to. Grantham has become a household investing name with his uncanny predictions of numerous asset bubbles as well as his general knowledge of the financial world. According to Mr. Grantham, the next seven years will see timber outperform all other asset classes. The prediction laid out a 6.5% annualized return for this commodity, while other asset classes lagged behind [for more timber news and analysis subscribe to our free newsletter].
