The Most Bullish 'Housing' Chart We've Seen All Year

The most bullish housing chart we’ve seen all year doesn’t have anything to do with houses.

It’s this one from the AAR’s latest Rail-Time Indicators report, showing year-over-year shipments of lumber.


Photo: AAR

Other than that weird spike in December 2010 (we’re not sure what the deal is, exactly there), this is one of the biggest-year-over-year jumps we’ve seen in a long time.

The housing connection is fairly obvious, as lumber is connected to new home building, renovations, etc.

What’s more, there’s a good argument to be made that lumber is a better leading indicator than copper, which basically behaves concurrently to stocks these days.

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