Lumber prices are hovering near decade highs.
This has got me very interested in the space.
I have a keen eye on Weyerhaeuser. I am going to do a more thorough equity analysis on WY, but for now just know that with over 13.1M acres of American timberlands. Weyerhaeuser is sitting on literal mountains of cash.
Rayonier (RYN), Universal Forest Products (UFPI), Polatch (PCH), Patrick Industries (PATK), and Boise Cascade Company (BCC).
Potlatch (PCH) Merges with Deltic Timber (DEL) First Half of 2018:
Legendary activist investor, Carl Icahn was vocal about his support for Donald Trump from the very beginning of the presidential-elects campaign. To the victor, goes the spoils and today Icahn Enterprise is well-positioned to capitalize and prosper throughout the reign of a Trump administration.
I have had my eye on Icahn Enterprise (IEP) for quite some time now.
With a dividend yield north of 10% and a financial mastermind at the helm: I believe that IEP presents a very attractive long-term investment opportunity.
Carl seems to agree: Upon further investigation, one must marvel at the amazing prowess of Icahn in assessing the value of his own company. Insider trading transactions reveal Icahn managed to dump most of his shares near the recent peak. One sizable retracement later, we find Icahn sitting fat with the IEP boat fully loaded as the tide sways north.
Carl Icahn's no fool- I'm in!
Everything you hear, read & see is filtered.
The media the biggest offender of pumping out propaganda.
Everyone has an agenda. Everyone is trying to sell you something.
Use your brain. Think for yourself.
Filter bias by using hard data.
Let the numbers do the talking.
GDP, Economic Data, Price Action. Let's see the charts, not the spin.
Trading. Let's see the execution & the profit if you can really do it.
Filter the world through your own mind.
Look at the world how you see it.
Do not succumb to other peoples visions.
Think for yourself.
Create your own existence.
The thing I hate about people who oppose capitalism is they don't understand Risk.
These people have no idea how difficult it is to create a successful business or actually make money speculating.
In capitalism, everyone has the opportunity to make it big but it takes unbelievable focus, discipline, & passion.
I fully embrace capitalism but not this crony-capitalism we have now. The banks have gotten too big. It's become fascism. Governments imposing unnecessary barriers, regulating out competition.
We need the return of small business.
We need to support our own people. Impose tariffs & bring manufacturing back domestically.
We need the money & we need the economy focused at a local community & state rather than federal level.
We need real free-market interest rates.
I believe capitalism can be reset but this credit bubble must burst. We need to get the defaults out of the way & the behemoth banks broken up.
There will be a few years of deep recessionary pain as we go through this reset but on the other side of that I believe we will see an economic boom greater than anything we've seen in history!
Consistent with my core Deflationary macroeconomic thesis & worldview I expect the US Dollar to continue it's longstanding Bullish Supertrend throughout 2016.
I also believe that with the Japanese Yen inverse correlation to equities coupled with a bear market in stocks. It is likely that the Japense Yen rises in tandem with the US Dollar throughout 2016.
Perhaps what has been most surprising is the resiliency of other developed market currencies (specifically the Euro.)
As we can see, the trade weighted US Dollar (comparing the dollar against every currency including emerging market currencies) is going nearly parabolic.
This is Deflation. As credit defaults, money gets destroyed. This in turn, makes the currency more valuable.
As long as we remain in a Deflationary environment, Cash is King!
The Breadbox Rotation is kicking in as some of these soft commodities begin to perk up.
The Wilshire 5000 has weakened Below the 200DMA as Compared to Stocks, The Dollar, Treasury Note Yields, Treasury Note Prices, Cocoa. The Only Thing they are Outperforming is Oil!
This Means that currently Equities & Oil are the Worst Asset Classes to be in.
Heres the thing about WTIC. When it was over $100 a barrel, the black gold rush coupled with free money at 0% interest rates spurred one of the greatest buildouts of excess capacity an industry has ever seen. As a result cost reducing technology has been innovated, the number of producing oil wells worldwide is massive. On top of this, the wells that have all been recently built are pumping like crazy trying to produce enough volume to stay afloat.
I don't see this predicament ending well for players in the oil patch. There are some very deep pocketed liquid entities in this arena, people who can turn profits with oil trading at a fraction of what the market will currently buy at. At the end of the day, the people with the cheapest production cost will win. Don't be surprised to see oil hit 30s, 20s, or even new lows before the huge supply glut gets thinned out by market forces and an equilibrium is found...