Weyerhaeuser Company (WY) – Investors: Who Do You Believe?

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U.S recovery?

Kevin Carmichael of the Globe and Mail newspaper in Canada stated in a recent June article, “The debate over when the Federal Reserve will begin to reduce its hefty stimulus is suddenly murkier after a report showing the U.S. economy emerged from the first quarter much weaker than previously believed.” (emphasis mine)

His article further stated that, “Including the final three months of 2012, when GDP barely grew, the U.S. economy now is facing three consecutive quarters of growth at an annual rate slower than 2 per cent.”

Then you have the massive U.S. national debt as well as household debt. You have a lumber, forest products, paper and paper products industry dependent on a U.S. populace that’s financially stable, with employment on a strong, sustained upward trajectory. There are indications of some headway in housing and employment, but this all could crash and burn like dried tinder very fast.

As a March 21, 2013, NPR article indicated, pessimists note that, “Loans may be cheap, but only for people with sterling credit scores. With unemployment still so high at 7.7 percent and wages scarcely growing, millions of Americans can’t qualify for home loans.” (www.npr.org, You Be The Judge: Is The Housing Market Really Improving?, Marilyn Geewax)

Am I convinced?

So, should I invest in any of the above companies? I’m not so sure. I don’t think sustained growth is a guarantee. You have those touting the new found health of the U.S. economy; you have the contrarians naysaying those outlooks. News reports abound that everything’s coming up roses this past spring and now summer, while others are pointing at the dried-out roots of a still very unhealthy economy.

Let’s face reality and realize that the U.S. economy is a fragile house of cards, and is not conducive to long-term sustained growth for the lumber, or any similar industry dependent on home sales. However, don’t believe me, or anyone else. Do your due diligence — and make the decision that’s right for you.

Investors, stop and think…who do you believe?

The article Investors: Who Do You Believe? originally appeared on Fool.com and is written by Michael Ugulini.

Michael Ugulini has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Michael is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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