Volatility has returned to the broad stock and bond markets with a vengeance. From geopolitical risks and stubbornly high inflation to equity overvaluations and bubble worries, investors have a lot on their minds lately. And that has produced some very wavy waters lately. Calming that volatility is a priority for many retail investors.
The best way to reduce that volatility may come from an asset class once reserved for institutional and high-net-worth investors.
We’re talking about timberlands and the various companies that own them, harvest logs, and make wood products. These firms offer a low-volatility way to generate income and get through the market’s malaise. All in all, timber could serve as ballast for other stock holdings.