Most wood products and forestry stocks performed well for Canadian investors in recent years, driven by a strong U.S. housing sector and demand for building products.
Red-hot demand for Canadian wood products pushed many forestry stocks to new highs in early 2018. However, falling lumber prices and signs of a slowing U.S. housing market began to take their toll in mid-2018, creating a perfect storm of disappointments for this industry.
However, these stocks may have found a bottom in late December and have recovered well over the subsequent weeks. In fact, the forestry and wood products industry is one of the TSX’s best performing industries over the past month, up 10.8 per cent.
