Why Timber and Farmland May Be Good Investments

[ 0 ] July 22, 2014 |

With the constant uncertainty in the global economy, it’s hard to figure out which investments to make that will give you the most return in the long run.

WATCH as Joseph Quinlan, Managing Director and Chief Market Strategist at U. S. Trust, Bank of America Private Wealth Management, offers investment tips, and gives insight as to why many are placing their bets on timber and farmland:

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An established investor should “make sure [their] portfolio is diversified,” Quinlan said. “That really means broadening it out; it’s not just stocks and bonds, butOLYMPUS DIGITAL CAMERA also farm land, timber, private equity, hedge funds.”

A diversified portfolio allows for money to be made in multiple ways, Quinlan explained. So, if there is another downturn, such as the recession that hit in 2008 – the effect won’t be as destructive to your personal wealth; some categories of your portfolio will suffer less than others and still provide good cash flow and can pay out investors.

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“We still prefer equities to bonds,” Quinlan notes. However, there is a growing emphasis on buying hard assets, such as timber and farmland, which are less affected by inflation, making them a good investment.

seo-logo-design-leedsAs for new investors, Quinlan suggests they “play it safe” and not be tempted by the “sexy IPOs.”

The problem with an IPO, he explained, is that no one really knows the true value of the new company, so putting your money into something that could end up flopping would be a bad investment. On the other hand, he continued, investing in large-cap established companies that have been around for a couple of decades might be a hard way to start, but it’s those companies that will produce consistent results over time.

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About Joe Quinlan: Joseph Quinlan is managing director and chief market strategist at U.S. Trust, Bank of America Private Wealth Management. In this role, he oversees the development and implementation of investment strategies and solutions for the various [...]
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