My latest post for Alpha Baskets is posted and includes the following;
To the extent timberland is an alternative holy grail with a low correlation and high returns (not saying it is, please bear with me here) the exchange traded vehicles that target timber one way or another don’t quite offer the same exposure. I looked at two ETFs that track timber-related companies and the problem is that they tend to be cyclical (many of the companies are in the materials and real estate sectors) and so the correlation is fairly high, running 0.70-0.75 most of the time, for something that someone might hope is an alternative to equities. Even lumber futures don’t seem to do the trick, the correlation appears to increase when equities go down, again maybe because it is cyclical.
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Bureau of Land Management Engine 2311, one of my favorite engine panel shots I’ve ever taken.
49 Palms Oasis hike at Joshua Tree National Park.
Neat old Harley