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Lumber is lifted from a flatbed truck at a new home job site in Brampton, January 10 , 2014.
Lumber is lifted from a flatbed truck at a new home job site in Brampton, January 10 , 2014.
(J.P. Moczulski For The Globe and Mail)

How can home builders be surging while lumber tanks?

Brutal winter weather straight out of a Charles Dickens novel has caused a sharp divergence in the price of lumber and home-builder stocks, making it difficult to discern the health of the U.S. housing market. It is reasonable to expect that the two will begin to move in tandem again in the coming months. This may create opportunities for investors.