[OT] Concrete as a hedge for Oil??!!
This morning was rainy and gave me an opportunity to catch up with the WSJs that I missed while on vacation. In the Wednesday Texas edition there was an article on the shortage of concrete in Texas. Seems as if a boom in road building, home construction, etc. have placed an enormous strain on the concrete industry in Texas to provide adequate supply. Concrete is being "allocated" and prices are rising (up 40% since 1990). Apparently contractors/construction companies are even looking to alternate materials (ie, asphalt -- Aside to Wedgie:go AIPN!) or other construction methods than the traditional concrete slab (ie, posts and pilings). Could it be true that concrete's demand is up and price is up (just like Oil -- ha ha ha barf!)
I recall that one, if not both, of this thread's Masters of Financial Discourse -- Chuzzy and jbe -- once indicated that they had holdings in the concrete industry. At the time, I thought "concrete, how bizarre" -- but maybe if there is a real shortage it will be stodgy commodity like a stealth F-117.
Our economy continues to expand. At least in Louisiana and in my unscientific opinion, along the Gulf Coast, the building boom continues unabated. Is there a national shortage of concrete? -- good grief, that sounds weird! The barriers to entry, IMO, could not be very high, could they? Would this be a good play??
If anyone is interested, I'll pursue this. |
