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.
Seattle,
United States, November 2, 2012 -- 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 Forestry
Research Associates (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.
Media
Contact:
Peter
Collins
Forestry
Research Associates
620
Vineyard Lane
Bainbridge
Island, WA 98110
(206)
316 8394
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