When the lumber to gold ratio spikes, it’s usually a signal that risk on sentiment will remain strong, said Michael Gayed, portfolio manager at Toroso Investments.
Gayed has been tracking the lumber to gold ratio as part of his Lead-Lag report, and his studies have found that peaks and troughs usually lead equity rallies and declines, respectively.However, given the spike in lumber prices, it’s only a matter of time before prices mean revert downward, …
The content provided herein is provided on an “as is” basis without any warranty of any kind, whether express or implied and your use of the information provided in said content is entirely at your own risk.