Tuesday 19 March 2013

Shipping Container Investing Offers Safe and Steady Returns


Private savings from the working class is a good example of funds that need to increase through investment, while also protecting the principle from adverse risk factors. Although depositing money into the bank is often considered the safest approach, this method of investing is unlikely to provide phenomenal returns, as the global nominal interest rates have been close to zero per cent; for many years. With that being said, sometimes owning hard assets like a shipping container, is the only viable and profitable option for investment-seekers; to earn a steady return.

Overall, hard assets are classified as a low risk investment and have proven that they can provide a natural hedge against inflation. Unlike ordinary stocks, container ownership can help apprehensive investors diversify their portfolio, without impacting their expected return. Because profits from investing in shipping containers are determined by an established container lease agreement, it is almost always a fixed contract and thus relatively easy for investors to forecast their future returns. As a result, if as an investor you are saving and you don't need your investment principle in the short term, hard assets provide the greatest return without posing too much risk.

It is important to note that international trade is experiencing the largest growth of any sector in the world right now. Furthermore, it is expected that the Shipping Industry will more than double it's trade activities, over the next two years. In the process, the demand for shipping containers is expected to grow tremendously alongside, which suggests that the returns on shipping container investments will almost certainly increase in value; as well.

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