COMMUNIT Y
WHY LAND HOLDS VALUE IN TIMES OF MARKET DISRUPTION by Jason Burbage
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It’s no secret that investors here in the U.S. and around the world are very nervous and uncertain about where to put their money amid the current COVID-19 crisis. The volatility of the markets — from equities to bonds to commodities — over the past few weeks tells a very grim story about investors’ portfolios. The Dow Jones Industrial Average, for example, shed about 40% of its value from the beginning of the year before beginning a halting ascent. Entire industries such as travel and restaurants have ground to a halt. As could be expected, the ripple effects
are severe and will be felt throughout the entire economy. So for investors searching for peace of mind, where should they put their money?
The Promise of Land Diversification should always be the priority of every investor, especially during uncertain times. Diversifying one’s portfolio is more urgent than ever lest one avoid sliding into a financial abyss. One investment class that often f lies under the radar but offers strong
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long-term growth and stability, even in times of uncertainty, is land. Whether it’s for farm, ranch, plantation, timber, recreation, or commercial development, land is one of the oldest and most reliable investment classes in existence. But when people typically think of real estate investments, they associate them with rental properties, commercial properties, and foreclosures. They seem less likely to think of raw land as an investment and end up missing out on many significant benefits. Some will say that land is a boring investment. It is true that land
