One thing that we know for sure: despite all of the financial, economic and geopolitical issues that we are faced with today, trees still continue their growth while ignoring all these problems.
To further illustrate this point, the biological growth of trees in the US South (or anywhere else for that matter) is unlikely to be affected by rising social unrest across the world, whether or not Greece stays in the Eurozone or whether or not China’s growth comes to a complete halt. Biological growth can, however, be affected by weather patterns and invasive diseases and pests, as is currently the case in much of British Columbia with the Mountain Pine Beetle (MPB) epidemic.
Dr. Jacek Siry, Associate Professor of Forest Economics here at the Center for Forest Business, recently discussed his views on why he believes that now could be an opportune time to invest in timberland. In his interview, Dr. Siry discusses the following topics in relation to how he sees the supply issues playing out:
The status quo on B.C. timberlands and their current output to the global market
How much longer it will be before the MPB begins to impact markets
Alternative suppliers and the costs associated with that supply
Investor outlook over this period
Why now is a good time to participate in timberland investing
Some of the investment benefits associated with timberland investing
Expected investment returns as compared to other asset classes
You can listen to Dr. Siry’s full interview here: Supply Shock Interview
We hope you enjoy the interview and gain some perspective on what Dr. Siry believes could be a compelling reason to be invested in timberland in the coming years.