Timber Sector Begins to Show Promise

Timber and lumber have drawn a lot of attention in the last few years, as legendary investors like Jack Meyer and Julian Robertson extolled the virtues of diversifying an equity portfolio with timberland.

But the sector has only recently been living up to some of the expectations.

Lumber prices have been in a bear market of late, as indicated by the chart, and that the correlation to equities at times is quite low.

Despite the big bounce of late, the International Wood Markets Group says the next bull market is still two years away, but when it comes, it will be record-setting. ...