Timber for the long haul

[amopabila]

Given that the second word in the title of these forums is Traders as opposed to Investors it is not surprising much of what is posted here are short run ideas including day trades, swing trades, and momentum plays.

For those of you with a longer-term investment horizon you may want to consider adding exposure to timber to your portfolio for inflation protection and real growth at about the long-run pace of the global economy. Some of the greatest investors in the business are the former and current managers of Harvard & Yale's endowments - Meyer and Swenson respectively. Here is an excerpt from Yale's 2006 report. Note the endowment has over a quarter of its investments in real assets and one of the largest allocations to timberland in the industry (and the top annual performance over the last 20 years to boot).

[AngDype]

Now granted Harvard and Yale are likely making direct investments in timberland as Harvard Mgmt Company bought 10,000,000 acres in New Zealand under Meyer. In my view this does not preclude smaller investors from gaining access to this asset class. Below are a few options if one was so inclined to obtain exposure to timber for the long haul.

http://onlinetradersforum.com/attachments/a-jpg.13285/

[Anjelkasl32]

I don't claim to be a guru with respect to timber but the obvious story in timberland investing - and the likely reason HMC invested in New Zealand forests - is the China building boom and to a lesser extend India's growth. Therefore, as the following link explains if one were to select their own timber REITs rather than using an ETF it may be wise to consider how levered the timber firm is to growth in China and India.

http://beta.fool.com/latimerburned/...play/6202/?ticker=PCH&source=eogyholnk0000001 (http://beta.fool.com/latimerburned/2012/06/26/why-im-buying-great-resources-play/6202/?ticker=PCH&source=eogyholnk0000001)

And here are some of the better known timber REITs in the industry (it sure looks like someone is buying aggressively as of late):

http://onlinetradersforum.com/attachments/c-jpg.13287/

[Annaea]

An update on timber assets. Looks like things are unfolding pretty well. I'd expect this trend to continue with the Fed trying to spur inflation and reflate assets. Real assets like timber land should due well under such inflationary pressure. Many of these individual names like Plum Creek [PCL], Weyerhauser [WY], and Rayonier [RYN] look rather overbought at the moment. However, I think dips are buyable with the Bernanke Put (QE ad infinitum) under the market.

http://onlinetradersforum.com/attachments/a-jpg.13624/

[AnthonyHib]

Timber is pulling back after becoming extremely overbought in the short run. Look for retracements that coincide with an RSI(14) that bounces off the 40 to 45 level for an entry if you're considering this asset class. Outside of gold timberland may be the best inflation hedge available. It also has the benefit of spinning off cash flow which is not a characteristic gold can claim.