Disruptions to the U.S. economy largely resulting from the coronavirus pandemic have created an environment of fear and uncertainty. This sobering situation transformed a once optimistic view in the forest products industry for 2020. Forisk analyzed the performance of timberland investments during turbulent market environments and projected scenarios to assess implications for the forest industry. This white paper, “Timberland 2020: From High Hopes to Viral Mopes and Back Again”, revisits the fundamental investment thesis and long-term benefits of owning timberland. After summarizing the context of the current pandemic and market volatility, we address the question, “do my reasons for holding timberland assets still apply?”
Outline and Contents
- Summary Messages that detail key findings and conclusions.
- Introduction to the analysis.
- Economic Situation that summarizes the U.S. macro environment prior to and following the onset of the coronavirus.
- Timberland in Turbulent Times which assesses the performance of private timberlands relative to equities over three decades and through three recessions. Includes a review of the role of timberland as an inflation hedge and wealth preserver.
- Forest Industry Scenarios in the Short Term compares the implied impact on forest industry production estimated as of January 2020 (pre-coronavirus) versus April 2020.
- Timberland Returns compares the annual performance of private timberland investments versus other asset classes and in early 2020.
- Conclusions affirms the timberland investment thesis and lists three key questions to watch as the forest sector advances through the coronavirus and current recession.
- Format: PDF download (11 pages in length)
- Price: $250