Ecologix Resource (EXRG)

[Realityhurts]

The Ultimate Inflation Hedge - Invest in Timber and Protect Your Wealth

Ted Peroulakis
Investors Daily Edge

If you’re concerned about rising inflation then you may want to think about investing in natural resources. Timber has been an attractive investment for thousands of years and is one of the best inflation hedges available.

It’s really easy to invest in timber too. You don’t have to go out and plunk down a few million dollars to buy a tree farm. You can simply buy stock in a company in the timber business! As timber prices go up, your stock price goes up! It’s that simple.

(I cut a part out here due to the fact that it reflected on the ticker PCL and the pps moves around that timeframe which was early '09, thus, not applicable now)

The Earth currently has 6.76 billion people and the world’s population is expected to hit 9 billion by 2040. All these extra people are going to consume timber in a variety of uses from home construction to wood pulp used in paper production. Demand will greatly exceed supply, and this will drive timber prices much higher.

Timber tends to outperform inflation and the stock market over the long term. In fact, timber usually performs quite well in times of economic stress like we are experiencing these days. When we finally exit this economic crisis, you should see timber prices rocket higher due to construction demand increases and inflationary pressure.