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AAA welcomes timber investment article
An article in Money Morning, which talks about the benefits of investing in timber during economic downturns, has been welcomed by AAA.
The alternative investment advocacy group claims that Don Miller’s article makes some very important points about how investing in timber, and in alternatives in general, can help investors during difficult financial times.
“Miller talks about the fact that this is a real, tangible investment, that you can count on to grow," stated AAA’s analysis partner, Anthony Johnson.
As well as pointing out the average 14 per cent returns generated by timber investments in the period between 1987 and 2010, Miller’s piece also underlines the general consensus that timber demand is set to rise.
The United Nation’s Food and Agriculture Organization, for example, forecasts that demand for wood should double by 2050, despite emerging trends such as paper recycling. The growth of economies like China and India is promoting this major growth and Western investors are reaping the benefits.
The demand will also be promoted by the growing use of wood as a renewable fuel source, and our use of timber as a building material will also increase as you reliance on man-made, unsustainable materials cools off.
AAA’s analysis partner, Anthony Johnson lent his support for Miller’s arguments, adding “Investing in timber offers great protection against inflation and a dependable source of income whenever you need it.”
“The great thing about buying trees is that if the timber prices aren't doing so well one year, you can sit tight and watch your investment physically grow bigger until you are ready to sell.”
AAA claims that something this measurable and tangible is attractive at a time when many are growing increasingly uncertain about investing in the stock markets. AAA supports projects run by firms like Greenwood Management, which offers investors the chance to buy up sections of sustainable plantations in Brazil.
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The remit of Alternative Asset Analysis is to analyse and provide news on the global performance of a wide range of alternative asset classes including, but not restricted to, commodities, real estate, forestry, foreign exchange, hedge funds, private equity and venture capital.
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