Quantum risk is broader than Bitcoin, says Samson Mow. Google highlighted 2029 as a key milestone for post-quantum cryptography. Bitcoin risk is real but long-term ...
Quantum risk is broader than Bitcoin, says Samson Mow. Google highlighted 2029 as a key milestone for post-quantum cryptography. Bitcoin risk is real but long-term ...
Iran’s state media IRNA said Deputy Foreign Minister Kazem Gharibabadi announced that Iran and Oman are drafting a deal to monitor shipping in the Strait of Hormuz under joint oversight. Separately, Xinhua, citing UAE media, reported that a UAE minister said the country is willing to join efforts to ensure safe navigation in the strait. Domestic China’s State Tobacco Monopoly Administration releas...
Iran’s state media IRNA said Deputy Foreign Minister Kazem Gharibabadi announced that Iran and Oman are drafting a deal to monitor shipping in the Strait of Hormuz under joint oversight. Separately, Xinhua, citing UAE media, reported that a UAE minister said the country is willing to join efforts to ensure safe navigation in the strait. Domestic China’s State Tobacco Monopoly Administration released draft guidelines proposing quota controls for e-cigarette manufacturers.
Aleksandr Potashev/iStock via Getty Images Investment Thesis My last article on iShares Global Timber & Forestry ETF ( WOOD ) was published nearly two years ago , and my prediction of poor long-term performance for the fund has proven so far correct. Its 12% capital loss since my previous article compares extremely poorly with the 29% enjoyed by the broad market over the same period (as proxied by...
Aleksandr Potashev/iStock via Getty Images Investment Thesis My last article on iShares Global Timber & Forestry ETF ( WOOD ) was published nearly two years ago , and my prediction of poor long-term performance for the fund has proven so far correct. Its 12% capital loss since my previous article compares extremely poorly with the 29% enjoyed by the broad market over the same period (as proxied by the S&P 500). Data by YCharts Nevertheless, I thought that, given the composition of the ETF changing significantly since my last coverage, it would be worth re-appraising the fund and looking at whether the timber sector (as proxied by WOOD) now represents an attractive value play. Ultimately however, my up-to-date analysis concludes that ongoing structural weakness in the timber industry renders WOOD an unattractive long-term bet versus the broad market, and may actually increase portfolio risk rather than effectively offering the diversification some investors may hope it provides. Lumber Prices Data by YCharts Considering that the companies owned by WOOD are mostly concerned with selling material derived from trees, it is not surprising that the ETF's performance is linked strongly with lumber prices. As shown above, although the lines don't overlap perfectly, the correlation is definitely strong, in the same way as the market price of gold miners or oil majors tends to align with the price of the specific commodity they are extracting and selling. For me though, what is most striking about the graph above is that it demonstrates that over a nine-year period, in terms of capital gains, there has been almost no difference in return between the price of the raw asset (lumber, up 29%), and the aggregate market value of the companies producing it and turning it into products such as paper and packaging (these are up only 30%, per WOOD). Data by YCharts Taking into account total return (i.e. dividend reinvestment), the picture is slightly more optimistic, but it is difficul...