FRA Highlights Danger Of Focusing On Stock Investments

FRA has highlighted the risks associated with focusing purely on stock investment when building up a portfolio, particularly in the emerging economies.

Forestry Research Associates (FRA) has highlighted the risks associated with focusing purely on stock investment when building up a portfolio, particularly in the emerging economies.

The past few years have been a period of turmoil for the global economy and countries that were previously viewed as safe havens have been thrown into the uncertain mix along with everywhere else.

In fact, desire to invest in some previously popular regions of the world actually waned since 2008, with Europe and the US, for example, losing ground to the BRICs.

Analysis partner at FRA, Peter Collins, is keen to highlight the dangers inherent in this trend: "Investing in emerging, fast-growth economies is a sound plan for profit. But when it comes down to it, you need to be extra careful where you put your money. Stock markets are notoriously volatile and don't always provide an accurate reflection of the growth in infrastructure and jobs that is taking place in countries like Brazil.

"At FRA we have been paying far more attention to solid assets, such as forestry investments. These offer a more definable return and companies like Greenwood Management run schemes that make it easy to invest in alternative assets such as forestry without having to worry about constant management issues."

FRA is keen to emphasise the fact that not only has forestry investment been proven as a viable investment model, but we have also seen confirmation that, when done right, it can provide communities with an opportunity to keep their local forests alive and gather a viable sustainable income from their surroundings.

Mr Collins added: "I look forward to a future in which people see the benefits in investing in forestry not only to support themselves, but also to provide a solid platform for sustainable growth on both a local and global scale."