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The whole point of a market is that if you think its wrong you can profit by correcting it. If you think prices will fall, have you shorted it? If they're going
by LatteLazy 5y ago
The whole point of a market is that if you think its wrong you can profit by correcting it. If you think prices will fall, have you shorted it? If they're going up I assume you're long?
- dcow 5y agoSo a bunch of people think the lumber market is going down during the pandemic and take out short positions on lumber futures because they want to profit and then lumber mills start closing in response. The problem is the lumber mills closing. That’s not part of the picture that can be easily corrected. Now the market participants, who were wrong, have impacted the production capacity of lumber and we cant get any new sawmills because it’s too expensive to spin one back up? Maybe the info graphic isn’t telling the whole story, though?