Bainbridge Island, WA (PressExposure) November 11, 2011 -- An investment expert's predictions about forestry and farmland investment reflects opinions held by Forestry Research Associates (FRA), the research and analysis consultancy has claimed.
An investment expert's predictions about forestry and farmland investment reflects opinions held by Forestry Research Associates (FRA), the research and analysis consultancy has claimed.
Jeremy Grantham, who is considered to be a leading investor at GMO Asset Management, has predicted that forestry investment will continue to generate strong returns: "For those with a long horizon, I am sure well managed forestry and farmland will outperform the average of all global assets."
The expert, who has been in the business for 40 years, is obviously keen to promote the advantages of this alternative asset at a time when traditional markets are looking vulnerable and far less attractive than they once were.
"Risk averse investors are steering well clear of traditional investments," said FRA's analysis partner Peter Collins. He added, "It's refreshing to hear a high profile investment expert speak so confidently about the potential returns available through forestry investment."
FRA supports investment in sustainable forestry, through firms like Greenwood Management, which runs several plantations in Brazil in which individuals or institutions can invest upwards of EUR10,000.
FRA claims that forestry is a solid bet as it is far less affected by larger economic trends and timber prices have been on an upwards streak for many months thanks to rapid infrastructure and construction growth in Asia.
Mr Collins also added, "Investing in timber is also a safe bet from an ethical standpoint as sustainable forestry plantations and other similar projects are helping to provide countries like Brazil with alternatives for charcoal other than using native trees."
FRA claims that investing in managed forestry can also help developing countries, such as Brazil, to thrive and begin to understand the value that can be gleaned from standing forests, as well as from timber.