Í’ve been reading a bit about inflation and soft commodities. I have too much of crypto in my portfolio and little of other sectors. I’m looking at the price of lumber and I like the setup. Although if the markets fall I think the price could fall as well. It can maybe protect my portfolio a bit against crypto specific events.
I like the following setup.
The price of lumber has gone up a bit since that post. The Risk/Reward seems good. Perhaps a retest of the high again in November/December?
I couldn’t find a certificate to speculate directly in lumber but I found a few ETFs. However I’m looking at the following stocks:
West Fraser Timber Co., Ltd. (WFG) (Canadian)
Bergs Timber B (Swedish)
I think I will speculate with a smaller starter position in WFG and perhaps Bergs Timber. Timeframe would be up to half a year. I don’t own any at the moment.
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Perhaps these are “blue sky stocks”?
Further reading:
https://antiloophedge.com/2020/09/19/inflation-revisited/