Container Investments Deliver Stability, Consistent Returns

Since the Global Financial Crisis, shipping containers have become one of the world’s leading hard asset investments. Although investing in gold has been the most popular for centuries, the volatility and uncertainty in the last few years make it a risky investment. For investors who don’t have the stomach for the ups and downs of gold, stocks, and bonds, shipping container investing has proven it can deliver consistent returns regardless of the performance of traditional markets.

As with any asset, shipping containers’ value is determined by demand. When there is a rise in demand for gold, the value rises. Because of their important role in world trade, shipping containers have experienced an increase in demand year-on-year, equal or greater than the rate of global economic growth. Thanks to the steady, worldwide demand for shipping containers, they are a great way for investors to preserve their investment capital and earn regular returns to supplement their income.

The lifespan of a cargo container is in excess of ten years. This provides more than a decade of investment income and security for an investor with a long-term investing strategy. Although it is true that gold has an infinite lifetime, the value of the precious metal is subject to regular change, as well as losses from inflation and the rising costs of living. This means that the money you invest in gold is not likely to have the same value when your investment comes to an end.

Making an investment in gold is sometimes difficult for private investors. Many are unsure how or whether to purchase gold coins, bars, or jewellery. On the other hand, shipping container investments are easily available from brokerage firms like Davenport Laroche, who specialize in maritime assets. With their help, investors can purchase and deploy their container fleet, and begin generating investment revenue immediately.

One of the things investors like most about containers over gold, is the stability they provide to a portfolio. When the price of stocks and gold fluctuated in the past, shipping containers have proven they can maintain their performance and continue to provide better investment returns.

Investors’ Attention Being Drawn To Asian Economic Giants

When we look at the countries with the strongest growth in the world, much of our attention is drawn to Asia. Within the continent, investors will find a few regions that are experiencing significant growth and prosperity. Among these are a group of emerging markets that include China and India, as well as the United Arab Emirates.

Regardless of their status as an emerging market, these countries/regions are performing better than most of the world’s “economic leaders,” and in doing so, are making big contributions to global growth. Without their economic performance since the Global Financial Crisis, the world would not have experienced such a smooth road to recovery.

China

The Chinese economy, the world’s second-largest behind the United States of America, grew 6.9 percent in the first quarter of 2017. In a remarkable sign of strength and stability, China has recorded five consecutive quarters of growth of either 6.7 percent or 6.8 percent. In February 2017, China unexpectedly posted its first trade gap in three years. This upbeat import reading reinforced the growing view among analysts that economic activity in China has picked up in the first two months of 2017.

India

According to the Central Statistics Organisation (CSO) and International Monetary Fund (IMF), India has emerged as the fastest growing major economy in the world. Despite the uncertainties in the global market, the Economic Survey 2015-2016 has forecast that the Indian economy will grow by more than seven percent for the third successive year in 2016-2017, and is likely to begin growing at eight percent or more in next two years.

United Arab Emirates

MEED’s annual UAE Outlook Report the UAE will see real GDP growth rise to between four and five percent a year, from 2017- 2020. This is compared with approximately three percent growth in 2016. The UAE’ economy is well-diversified and supports large and experienced corporations active in regional and global markets. Moreover, the banking system is solvent, liquid, and well-managed.

For investors looking for a break from the uncertainty and volatility of Brexit predictions in Europe and Trump forecasts in the U.S., Asia’s economic leaders continue to offer a more appealing investment environment. Their leading industries, like container shipping and manufacturing, continue to demonstrate growth and are fueling prosperity on the continent, and around the world.

Hard Assets Protect in an Uncertain Investing Environment

In the current volatile and uncertain investing environment, the investment community is looking to add hard assets to their portfolio. These investments, which include tangible items like gold coins, fine wine, and investing in shipping containers, have proven they can retain their value; even during times of economic and political turmoil. This appeals to investors, especially those who are concern about the effects of war on their investments, and the current state of the global economy.

To the surprise of many, during the global financial crisis in 2008 and 2009, hard asset investments outperformed popular stocks and bonds. This is because in most instances, the performance of hard assets is not affected by the decline of traditional investments, and thus are able to offset any portfolio losses. It is this resilience that makes including this asset such a good idea.

Financial advisers have long recommended that diversifying your portfolio holdings is a great way to avoid a worse case scenario. Adding investments that act independently of equities and bonds ensures that in the event of a “crash” or inflation, investors can rely upon a different class of investments to deliver strong, steady returns. This is particularly important for an investor who relies upon dividends and interest payments to supplement a retirement income.

A hard asset investment is generally a long-term commitment; usually upwards of 10 years. During that time, they provide strength to an investment portfolio by reducing exposure to risk, and by delivering profits to investors during times of uncertainty. From an investor’s perspective, especially one who has experienced adversity in the markets, these are two very appealing characteristics.

Most members of the investment community are not in a financial position to wager their money on high-risk investments, like risky bonds and the stock market. The approach adopted by many is one that avoids excessive risk, now and in the future. The introduction of hard assets works to shield an investment portfolio from unexpected exposure to risk.

Whether it be an investment in gold, shipping containers, or fine wine investments, hard assets should be part of an investor’s long-term investing strategy. Limiting exposure to volatile assets will better protect one’s principle and help achieve investing goals in a timely manner. Without including them, investors run the risk of overexposure to traditional assets that could be financially devastating if a “crash” were to occur.

Review Of Davenport Laroche And Shipping Container Investing

When I was first approached with the opportunity to invest in shipping containers, I was skeptical. The truth be told, I didn’t understand how steel boxes on cargo ships were going to make money for me. But, after several emails, a review of the information package, and a lengthy telephone call with a representative from Davenport Laroche, I was ready to invest.

This is a summary of the information I collected when doing my review of Davenport Laroche and investing in shipping container investments.

Let’s Review The Opportunity.

The opportunity presented by Davenport Laroche allows investors to purchase their own fleet of containers and earn a monthly income by leasing them to international shipping and logistics companies.

The widespread adoption of shipping containers (containerization) has encouraged and supported globalization for more than half a century. When you review their contribution to global trade, it is clear that they perform a vital role. Because of the world’s dependence on shipping containers to transport goods, investors can expect demand to continue for the next half a century and beyond.

Let’s Review The Company.

Strategically located in Hong Kong, Davenport Laroche has access to clients in the thriving Asian market. This includes economic giants like China and India, as well as infrastructure projects along China’s One Belt, One Road project; which spans across parts of Europe as well.

The staff members at Davenport Laroche were kind, professional, and very knowledgeable about the shipping industry. My investment questions were answered directly and supported by the most current facts and figures. Above all, they were forthcoming with their information and seemed deeply committed to my investing success.

Let’s Review The Income.

Davenport Laroche matches investors’ containers with shipping clients and then deploys them to meet the demand. The shipping client is responsible for paying a monthly usage fee or lease, which is collected by Davenport Laroche and then dispersed to investors.

The company constantly conducts a review of the regions with the highest demand and works to deploy investors’ containers where the need is greatest. This ensures that containers are constantly employed and earning money.

Final Review.

The investment opportunity presented by Davenport Laroche allows investors to participate in the shipping industry and contribute to global trade, while earning themselves a monthly return. The fact that the company assumes the responsibility of managing the containers means that investors have nothing to do except review their statements and collect their money every month.

How To Choose The Best Investments

Accounting for your financial position, identifying your tolerance for risk, and scrutinizing reviews, offers a better chance of reaching investment goals.

Determining what you want to achieve with your investing (and investment plan) is an important part of establishing a strategy and choosing the best investments to build your investment portfolio. Identifying your needs and financial goals, as well as being truthful about your tolerance for risk, is a great place to begin when choosing the investment options to develop the best investing plan.

To choose the best investments:

  1. Determine Your Financial Goals
  2. Identify Your Tolerance For Risk
  3. Scrutinize Investor Reviews

How Much And How Long.

Knowing what amount of money and for what length of time you can afford to invest, is very important to establishing the best investment plan.

Investors must be aware that some investments have a minimum financial commitment. Also, the purchase of some assets require a lump sum investment, such as corporate bonds or the deposit to purchase a real estate investment, while other options offer the flexibility of regular contributions; such as a cash Individual Savings Account (ISA), or stocks and shares ISA.

Aside from the financial commitment, certain investment products run for a fixed period, and thus require a time commitment as well. Investments, such as shares, are expected to be part of a long-term investment plan and should not be considered as a viable option for a short term investing strategy.

Identifying and Managing Risk.

Investors can manage and improve the balance between risk and return by spreading their principal across different investment types and industries whose prices don’t necessarily move in the same direction. this approach to investing will result in less volatile returns while still achieving growth and reducing the overall risk to the portfolio.

For investors who do not have the time or inclination to be hands-on, or if there is only have a small amount of money to invest, then a popular choice is hard assets, like making an investment in shipping containers, which gives investors a better chance of beating inflation and reaching their long-term investment goals; with much less exposure to risk.

Research Investment Reviews.

Despite the compelling arguments shared by others inside forums and communities, it is important that investors make every effort to set the record straight and challenge the writers motivation for writing a review.

most erroneous stories never scrutinize question

The most erroneous stories are those we think we know best, and therefore never scrutinize or question. – Stephen Jay Gould

Approach investment reviews with caution. Some authors are inclined to leave their viewpoint without having any related education or first-hand experience. Instead the assessment of critics and competitors is based upon speculation and theory, not facts and figures.

Accepting investment “opinions” as fact, without performing due diligence on the source (or motivation), is not recommended. Your financial future deserves an well-educated investment plan.

Stick To The Plan.

When reviewing opportunities with the intention of choosing the best investment, it is important to maintain focus on the short-term and long-term investing goals found in your investment strategy. For a majority of investors, the fundamentals of the best investment plan are to:

  • earn the best returns,
  • achieve the best portfolio growth possible, and
  • reduce the principal’s overall exposure to adversity.

Taking an approach that accounts for your immediate financial position, correctly identifies your tolerance for risk, and carefully scrutinizes investment reviews, will offer you a much better chance of beating inflation and reaching your long-term investment goals.