Alot of commodities including lumber are still well up from pre-covid. Lumber, corn, soybeans, wheat, hogs, sugar, cotton, copper are all up significantly from where they were two years ago. Lumber futures in July/19 were around 350$ so despite lumber giving back some of its parabolic gains of 2020, it is still double the price of two years ago. The US CPI print came in today at the highest level since the GFC.
What makes zero sense is what the bond market is telling us. How does a ten year year under 1.5% and a 30 year at 2% make any sense with and inflation print of 5.4%. It doesn't. The Feds are stuck in a bad spot where they cannot normalize rates. Who knows what is going to happen with the way things are going. The only guarantee is the government is going to try and dig more taxes out of us.
The Brookfield/Pembina deal is sure interesting to watch as a holder of both. Hopefully a win/win.
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There are some who can live without wild things, and some who cannot. Aldo Leopold
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