You may have noticed that the investment climate has been cooling in recent years. Investors are optimistic about the global economy, but they are cautious of both the stock and bond markets across the world. Much of their apprehension comes from talk of an overvalued stock market in North America, and increasing risks to bond investors around the globe. Political uncertainty in Europe, the UK, and the United States, as well as the threat of a military conflict in Asia, also has the investment community scrambling for investments that offer them lower exposure to risk.
Rising fears of a looming financial crisis have investment seekers looking for ways to avoid a worst-case scenario, like bankruptcy or financial ruin. For many, this has meant choosing hard assets over traditional investments. The greatest appeal of this alternative investment strategy is that it affords investors an opportunity to (in some cases) increase returns while satisfying their lower tolerance for risk and fear of a Black Tuesday scenario.
Among the leading hard asset investments is shipping container ownership. The shipping container’s tangibility, leading role in the global economy, and proven performance over the last decade, makes them a very appealing option for the cautious investor. In most instances the assets are managed by a container leasing company, and the generated income from shipping contracts with manufacturers and container lines is paid to investors on a monthly basis.
With thoughts of the Global Financial Crisis still fresh in their minds, investors are fearing a correction in the U.S. stock market, uncertainty with interest rates, and rising inflation. To avoid exposure to these struggling markets and negative influences, the investment community is embracing new, alternative opportunities – like shipping container investing. In doing so, they are enjoying freedom from the worries of the stock and bond markets.