Paper & forest products industry

Paper and forest products industries earning and economic performance have been on a steady decline for seven quarters since they reached their high point in the summer of 1995 and are expected to drop even further in the immediate future despite the tradition of cyclical changes. Paper prices are dropping and the construction industry demand for lumber will be impeded by increased interest rates. Investors who require good year-ahead performance should avoid involvement with paper and forest products companies whose equity prices are already near all-time highs.