Gavekal Capital: Lumber Falls to Lowest Level in Seven Months, a Negative for Stocks

Monday, April 14, 2014

Lumber Falls to Lowest Level in Seven Months, a Negative for Stocks

Lumber was the weakest of the major commodities today as it dropped 1.8% to a seven month low and decisively below pretty good support at around $330. Lumber is now trading about 14% off its December peak, which is slightly worrying. We've highlighted here, here, and here the recent weakness in lumber and what it could mean for stocks if previous trends hold.

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
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