(MENAFNEditorial)
Los Angeles CA (PR Buzz) April 17 2015 – Both real estate and stocks have had their day over the past couple decades but the real question that needs answering as we look toward the future is this: Which is today’s best contender as the superior long-term bet? Could timber be the new vehicle for accredited investors?
Remember 2008? The real estate market crashed and the S & P fell 38%! Timber gained 9.5%. What about during last century’s Great Depression? Stocks fell 70% while timber gained 233%!
“Timber is the best long-term investment there is” said billionaire investor Jeremy Grantham Chief Investment Strategist for Grantham Mayo Van Otterloo (GMO) in a recent newsletter. “It is the only low risk high-return asset.”
Grantham believes that timber will outperform all other asset classes for the next seven years! So does the United Nations’ Food and Agricultural Organization who said in 2005 that “world consumption of wood and wood-related products will rise by 60% over the next 25 years.”
“Trees grow in good times they grow in bad times” says Alex Wilson CEO of Maderas Futuro a Central American managed timber grower. “Trees don’t know if the stock market is up or down or what the economy is doing. As a tree grows the value of that tree is growing every year.”
The National Council (the real estate industry timberland index) showed a 15 percent annualized return from 1987 to 2007…forty percent better than the stock market. Grantham says that over the past hundred years timber prices have risen at an annual rate of 3.3 percent above the rate of inflation so right away there is a six- or seven-percent return. Include five percent a year in income from lumber sales and now the asset produces double-digit returns.
Wilson is offering his company’s free report explaining why large investors such as Yale and Harvard University incorporate timber into portfolios that have doubled over the last 10 years (only about six percent was in the stock market the rest was in alternatives like timber.)
About Maderas Futuro
Maderas Futuro is a Central American agricultural company specializing in the managed growth of valuable hardwoods and coconuts for investors worldwide. They follow strict reforestation practices protecting habitat for endangered flora and fauna. Accredited investors are welcome to contact them for the free report and further information.
Visit them…www.precioustimber.com
Follow them…http://blog.precioustimber.com
Call them…855-888-6288 (toll Free) and 949-204-3404 (USA)
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