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Investment Expert says Timber to outperform all other Asset Classes
The latest prediction from investment guru Jeremy Grantham that timber will outperform all other asset classes in the coming seven years has been welcomed by FRA.
The research and analysis consultancy supports forestry investment and is backing Mr Grantham's prediction that annualized returns for timber investors will reach around 6.5 per cent over the coming years. Grantham is well-known in investment circles for co-founding the Grantham Mayo Van Otterloo (GMO) fund and has made a number of accurate prediction about asset bubbles in the past.
"It's a good idea to take note of Grantham's predictions when it comes to the next big asset," claimed FRA's analysis partner, Peter Collins. "At a time when stocks and bonds are continuing to struggle to generate anything near a strong return, a growing number of investors are looking for the perfect alternative asset class in which to put their hard-earned cash - and timber could be just that."
In addition Grantham's predictions may be on the modest side, as they only take inflation of 2.2 per cent into account. With higher inflation, returns from timber investment could be even higher.
The average price of timber has risen by 5 per cent each year for the past 100 years and timber tends to do particularly well during times of economic hardship, making it a very attractive prospect at the moment. For example, between 1973 and 1981 when the US inflation rates grew to as high as 9.2 per cent, timber prices were increasing at a rate of 22 per cent per year.
Mr Collins added, "Investing in timber through sustainable projects like those run by Greenwood Management in Brazil offers an ethical way to invest in managed forestry and a great opportunity to see strong returns while helping to reduce climate change and deforestation."
About Forestry Research Associates
Forestry Research Associates is a research and advisory consultancy that focuses on forestry management, sustainability issues and forestry investment around the globe.
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394