Profit Confidential Questions if Collapse in Lumber Prices Predicts Market Correction - KSWO, Lawton, OK- Wichita Falls, TX: News, Weather, Sports. ABC, 24/7, Telemundo -

Profit Confidential Questions if Collapse in Lumber Prices Predicts Market Correction

Posted: Updated:

Profit Confidential examines whether the current poor forecasts for lumber prices are an indication of a major U.S. stock market correction.

New York, NY, United States – June 23, 2014 /MarketersMedia/ –

Profit Confidential (www.ProfitConfidential.com), an e-letter published by Lombardi Publishing Corporation, a 28-year-old consumer publisher that has served over one million customers in 141 countries, is questioning whether the recent collapse in lumber prices forecasts a correction in the major U.S. stock market indices.

“Historically, the direction of lumber prices has marched in step with the major U.S. stock market indices,” says economist and lead contributor Michael Lombardi. “If lumber prices are rising, it suggests demand for lumber is increasing, more homes are being built, more construction is happening, and the economy is improving. The opposite is also true; weak demand for lumber is a sign of poor economic growth.”

Lombardi explains that the direction of lumber prices can be considered as a leading indicator of the S&P 500. In fact, the spot price for lumber has followed the broader S&P 500 index for more than the last decade, with one exception: the present time.

“Since the beginning of March 2014, lumber prices have fallen sharply, dropping more than 10%,” he adds. “The S&P 500, on the other hand, has moved in the opposite direction, going up almost six percent. Because this disparity has never happened before, it is a sure sign of growing economic concern.”

“Investors can add the disparity in the direction of lumber prices compared to the direction of the S&P 500 index to the long and increasing list of historical indicators now pointing to a market that is overbought and overpriced,” Lombardi concludes. “Investors who own equities should be wary of the increasing risks of the stock market.”

For more information on Profit Confidential, visit www.ProfitConfidential.com.

Founded in 1986, Lombardi Publishing Corporation, which has served over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more information on Lombardi Publishing Corporation, visit www.LombardiPublishing.com.

For more information about us, please visit http://www.profitconfidential.com/

Contact Info:
Name: Wendy Potter
Email: press@lombardipublishing.com
Address: 350 5th Avenue, 59th Floor, New York, NY 10118
Phone: 905 856 2022
Organization: Lombardi Publishing Corporation

Source: http://marketersmedia.com/profit-confidential-questions-if-collapse-in-lumber-prices-predicts-market-correction/52274

ReleaseID: 52274

  • Local NewsLocal NewsMore>>

  • Body found in Duncan business

    Body found in Duncan business

    Thursday, July 31 2014 11:06 AM EDT2014-07-31 15:06:26 GMT
    Duncan police are investigating an unattended death after the body of a young adult male was found inside a Main Street business.
    Duncan police are investigating an unattended death after the body of a young adult male was found inside a Main Street business.
  • Police: Georgia man had 174 pounds of marijuana

    Police: Georgia man had 174 pounds of marijuana

    Thursday, July 31 2014 8:19 AM EDT2014-07-31 12:19:16 GMT
      Oklahoma police say they've charged a Georgia man with drug trafficking after they found 174 pounds of marijuana in a car he was towing.
      Oklahoma police say they've charged a Georgia man with drug trafficking after they found 174 pounds of marijuana in a car he was towing.

  • SkyWARN 7 Forecast

    SkyWARN 7 Forecast

    Thursday, July 31 2014 4:38 AM EDT2014-07-31 08:38:48 GMT
    A Few Breaks Of Sun This Afternoon...
    A Few Breaks Of Sun This Afternoon...
Powered by WorldNow
KSWO-TV, 1401 SE 60th Street
Lawton, OK 73501

Telephone: (580) 355-7000
Fax: (580) 357-3811
Email: news@kswo.com

All content © Copyright 2000 - 2014 Worldnow and KSWO. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.