Investment site, StreetAuthority.com, claims that there could be money to be made by investing in timber right now, as house building is set to boom in 2013, says Forestry FRA.
Bainbridge Island, WA, March 06, 2012 - Investment site, StreetAuthority.com, claims that there could be money to be made by investing in timber right now, as house building is set to boom in 2013, says Forestry Research Analysis (FRA).
FRA, a research and analysis consultancy, claims that although house building has been very depressed in recent years – with the past three years being the lowest on record for the number of homes built – things could be looking up next year.
Analyst David Sterman, who wrote the article said, “Timber is a highly price-sensitive commodity. When demand marginally outstrips supply, prices can soar.” He added that although many agree that this year will be another slow year for the house building market, 2013 could see a boom, with some analysts claiming that a million new homes will be built in the US between 2014 and 2015.
FRA points out that the article refers to the Guggenheim Timber ETF, which is one of the funds offering forestry investment to those keen to diversify their portfolios with an asset class linked only very loosely to the equity markets. In 2007, Sterman says that the fund is seeing an increase in interest from investors who are once again, seeing timber as a valuable commodity with the potential for massive growth in the coming years.
Sterman said, ‘For example, a 20 per cent upturn in housing construction, coupled with a 30 per cent upward move in timber prices, could yield potentially robust share price gains for these timber producers.’
“This is a great time for timber investments,” claimed FRA’s analysis partner, Peter Collins. He continued “It often represents an ethical option that is a true alternative to stocks and shares at a time when equities look less attractive due to their volatility.”
FRA supports sustainable forestry investment, such as the schemes run by Greenwood Management in Brazil.
Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
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