If your instinct is to sell Canadian forestry stocks out of concern that record-high lumber prices can’t possibly be sustained, you’re not alone: The stocks have fallen about 15 per cent as a group over the past three weeks. But should you tame that instinct? Weaker stock prices… are reflecting… U.S. single-family housing starts [which] fell 13.4 per cent in April. The setback suggests to some observers that sky-high lumber prices are starting to bite. …As well, the U.S. released a preliminary ruling that proposed doubling tariff rates on Canadian softwood shipments. …But there is a case for riding out the current bout of turbulence or even buying into it: Far from being priced to perfection, forestry stocks are reflecting far lower lumber prices by the end of the year. In other words, lumber mania isn’t priced in. [We respect the copyrights of the source publication – full access may require a subscription]