Timber investors are barking up the right tree

Although once considered an exotic investment, the forestry sector is winning fresh converts. So what is so attractive about investing in timber?

289_MW_P07_Maingif

Timber has a low correlation with other asset classes and hasn't been affected by the stockmarket downturn, says David Budworth in The Sunday Times. "The trees have never heard of the Nasdaq bubble and they don't know what a War on Terror is," says Steve Sjuggerud on Dailywealth.com. Rising demand should be underpinned by China's booming economy, keeping prices robust. The UN Food and Agriculture Organisation predicts world consumption of industrial roundwood will rise 60% over the next 25 years.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.