Correlation: Lumber Vs. Housing


Apparently the lumber price is a leading indicator and a proxy for the housing market. (Zero Hedge)








If the lumber price goes up, 2 months later, the housing market goes up. The same happens the other way round.



So it's very important to watch the lumber price, which can be found here.

http://www.nasdaq.com/markets/lumber.aspx?timeframe=10y









And even more important, if this correlation is real, then you can just predict the market and earn money by betting on the direction of the market.


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