Lumber is Beating Tech – 70% YTD

Lumber is Beating Tech – 70% YTD

We have one sector that is BEATING tech: lumber. It is ahead by 70% year to date (YTD). Yes, as families look for larger homes since homes are now extended offices, there is an emerging boom on the use of lumber. While I do not know how that is playing out in Lagos, one thing is evident: Work from Home (WFH) policy is not a bonanza from your company, it is evolving as a strategic business call which will help companies improve the efficiency of the utilization of factors of production. Imagine the “miracle” when rent payments disappear in financial statements!

Sure, I do think it is an illusion to expect some men to give up the fun of letting you know they are in charge, physically! The virus will pass, the clock-in will begin: Zoom makes everyone appear equal, not sure some men are paid to accept that! Yes, you must be reminded that this part of the canteen is for “senior staff” because hunger attacks them differently in Nigeria.

But right now, lumber is running the numbers.

As economies struggle to recover in the pandemic and U.S.-China tensions flare, investors piling into precious metals may be overlooking another potential haven: wood.

Lumber futures have doubled since early April and are level pegging with silver as the top-performing major commodity this year. Surprisingly, wood is even outshining gold — the go-to haven investment.

While lockdowns and stay-in-place restrictions were expected to curb demand for building materials, North Americans stuck inside decided to spend money and renovate their homes just as aggressive production cuts tightened supplies.

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One thought on “Lumber is Beating Tech – 70% YTD

  1. “Yes, you must be reminded that this part of the canteen is for “senior staff” because hunger attacks them differently in Nigeria.” This sentence embodies plenty things that are wrong with our psyches, the mentality is not changing anytime soon. But if companies here see WFH as a beautiful cost cutting measure, they won’t need an evangelist to preach it to them, they will embrace it! It is never about what suits the employees; but what suits the companies; it’s like a settled case.

    As for lumber performing so well in the US market, the people who chop down trees in this part of the world may not even earn extra dollar, that is if they are even aware of market trends.

    Here, local sellers can’t have any serious bargaining power, certainly not when your foreign buyer is posing like he’s doing you a great favour, because if he refuses to buy, you may have to sell below the initial price.

    A slave remains a slave, it doesn’t matter whether he’s intelligent or handsome, he remains a slave…

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