Re: Timberland-Farmland: Resilience Under Uncertainty
Timberland is strongly tied to single family home construction. Can defer a harvest but eventually it is stacks of lumber that generate the revenue. Even land converted to development use is tied to highly cyclical construction.
The farmland REITs are harder to predict since that sector has a shorter track record. Theoretically, food is less cyclical, but, in reality, grain is tied to meat and berries are a discretionary purchase.
If you believe the world will return to normal in a year, there are many things that are a good purchase. I would be wary of companies with heavy noninvestment grade debt loads since the company may survive but with new stockholders(ch 11).