Strong GDP and Fed pressure set market tension: Claris's Lee Baker

Company Insights - Weyerhaeuser is a timber company that has seen a decline of approximately 20% this year, mirroring the drop in timber prices [7] - The company is the largest timber holder in the United States, with the value of its timber exceeding the current market value of the company itself [7] - Weyerhaeuser's profits are significantly tied to new home building, which has been affected by rising interest rates [8] Market Outlook - The potential for Federal Reserve rate cuts is viewed as crucial for the market rally in the upcoming year, as these cuts could enhance liquidity in the housing market [5][9] - A cautious optimism exists regarding the likelihood of rate cuts, which could improve the outlook for the home building sector and, consequently, for timber demand [8][9] - The company offers a 4% dividend yield, indicating a favorable investment opportunity with significant upside potential [8]