In the current coronavirus pandemic and recessionary environment, do traditional reasons for holding timberland investments still apply? In Timberland 2020: From High Hopes to Viral Mopes and Back Again, Forisk compares the long and short-term performance of private timberlands to other assets and benchmarks and also revisits the historic tendency of private timberlands to hedge inflation.
Historically, timberland investments outperformed appreciation of the S&P 500 over longer 20 and 30-year timeframes that included three recessions, while the S&P outperformed private timberlands between recessions. The research indicates that, from a risk standpoint, timberland serves well to preserve wealth, diversify portfolios and generate cash, especially in tough economic conditions.
In addition to the analysis of timberland investments and current forest industry implications, Timberland 2020 summarizes the U.S. macroeconomic environment prior to and following the onset of the coronavirus, compares the implied impacts on forest industry production, and details key questions to watch as the forest sector manages through the current recession.
Click here for more information about the Study.
Click here for the complete Press Release.
This is the third in a series related to current Forisk research and the Q2 2020 Forisk Research Quarterly (FRQ) which includes forest industry analysis and timber price forecasts for North America.