Forest Investment Associates (FIA) believes these challenges necessitate a strategic approach to portfolio management, focusing on stability, diversification, and investment optionality. These same challenges also present opportunities for investors to consider long-term cash flows from assets that are historically uncorrelated with broader market movements. In this context, investors appear to be turning to real assets, such as timberland, which offers tangible value and has historically provided resilience against negative market disruptions. While uncertainty and volatility can create opportunities for savvy investors, FIA believes timberland stands out with its often-underrated qualities — resilience and its real return profile — that help to mitigate broader investment risks. Amid persistently high interest rates and increasing inflation, allocations to timberland have become even more timely for institutional portfolios. This is due to the ability of the asset class to generate long-term returns above inflation, with potential for stable yields from timber sales and other complementary revenue streams. 

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