Publications

- October 1, 2015: Vol. 2, Number 10

To read this full article you need to be subscribed to Real Assets Adviser

Timber! The asset class has taken a fall along with other commodities, but it continues to show resilience

by Benjamin Cole

The short-stick on timber is that, as an investment class, wooded lands grew well through recent decades — but timber has been trimmed in the ongoing commodities slump.

The rough-cut between the past and present sets up an investment question topical, timely and present, and yet classic: Should advisers direct clients into assets when the chips are down, or wait until there is a clearing in the financial thickets that comfortably affords a longer view?

For now, only the intrepid may wish to tread into timberlands cash in hand. Indeed, hardly a day goes by that one China-watcher or another does not predict a Sino doomsday, entailing yet another extended commodities slide. Meanwhile, newsprint-demand in the developed world has been dying for a generation, and the lumber-using U.S. residential construction market is still a shadow of the 2008 pre-bust days, though growing.

Given such an outlook, timberlands have actually fared better than might be expected. One b

Glossary, videos, podcasts, research in the Resource Center

Forgot your username or password?

Close your account?

Your account will be closed and all data will be permanently deleted and cannot be recovered. Are you sure?

We respect your privacy! Please give consent for processing data as described in our Privacy Policy