Of course, we all recognize that as the warning that lumberjacks shout after a tree has been cut and is about to fall.
Well, the price of lumber has also experienced a big fall.
On May 17, 2018, the price of the commodity hit $639 per 1,000 board feet on the Chicago Mercantile Exchange. Since that date, lumber's price has fallen nearly in half.
Here's how one major retailer is impacted (Marketwatch, Aug. 21)
Home Depot HD, +0.64% said lumber prices have fallen sharply since last year which will hurt sales, the company said.
"Lumber prices have declined significantly compared to last year, which impact our sales growth," said Craig Menear, Home Depot's chief executive, in a statement.
On Chicago Mercantile Exchange, lumber futures contract prices have fallen by nearly 50% since July last year to around $350 per thousand board feet.
The home improvement retailer updated its guidance to account for this deflation, "as well as potential impacts to the U.S. consumer arising from recently announced tariffs." President Trump has imposed tariffs on imports from China of some goods sold by Home Depot.
This plunge in the price of lumber is part of the big-picture downward slide in the prices of aggregate commodity prices.
As the October 2018 Elliott Wave Theorist said:
One More Wave Down Due in Commodities' Big Bear Market
Prepare now for what Elliott Wave International's analysts see ahead by reading the free report, "What You Need to Know Now About Protecting Yourself from Deflation."