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.

Alternative Investment Popularity On The Rise Among Investors

Morningstar’s report says that advisers, financial institutions and investors said their interest in alternative investments is rising, primarily to diversify.

investors want to diversify portfolio
image credit: the-economist.me

Alternative investments first began to really rise in popularity, and quickly enter the mainstream investment community shortly after the markets crashed in 2008-2009. To this day, they remain a popular choice for many financial advisers, investment institutions and private investors.

According to research conducted by Morningstar Inc., investors have been increasing their holdings in alternative investments; with investment figures reaching approximately $19.7 billion in 2012. The survey received responses from 235 institutions and 471 financial advisers in March 2013.

In addition to the steady rise in interest, the survey conducted by Morningstar also found that both advisers and financial institutions said they look to alternative assets primarily for diversification, in addition to low correlation and enhanced risk-adjusted returns. To add to this, 63 percent of advisers said they allocated somewhere between 6 percent and 20 percent of their clients’ portfolio investments to alternative investment offerings. 15 percent of advisers reported that they anticipated allocating more than 20 percent to alternative investments over the next five years.

Interestingly, both advisers and institutions said high fees were the top reason the would hesitate about investing in alternatives, followed by liquidity and transparency concerns. Thirty percent of advisers cited uncertain benefits as another cause for their apprehension, and 22 percent cited a lack of clarity on how alternatives fit into their investment portfolio.

investors looking for options

The findings of this survey suggests that alternative assets is where investors should consider looking, particularly when considering their return on investment (ROI), and planning their long-term investment success.

Since the market is offering poor results on traditional investments such as stocks, bonds, real estate, etc, advisers are suggesting that clients should review investment alternatives, if they hope to receive a dependable investment return. Lastly, it seems that this trend will continue over the foreseeable future, and alternative assets are set to become a hot trend within the market.

Looking For a Great Hedge Against Market Volatility?

An increasing number of alternative investments are proving they can outperform traditional options and in many instances provide a hedge against inflation.

Profit, loss and risk crossword on white backgroundThere are two words that can send shivers down the spine of a stock market investor; Market volatility. This is because the global stock markets are directly tied-in to the inflation rate. Whenever inflation rates rise, the overall stock market values decline.

In the last five years, the markets have been extremely volatile in the wake of the Global Financial Crisis that devastated many global markets, and crippled the world economy. Millions of investors lost billions of dollars leading to (what some people are calling) The Great Recession of the 21st century. Unfortunately, there are still some lingering negative effects, particularly highlighted by the financial/economic problems currently being experienced in Greece and Cyprus.

There once was a time not long ago, when the only choice investors had was to take a gamble on the stock market and fill their portfolio with shares. Thankfully that strategy has become less popular with the emergence of an increasing number of alternative investment opportunities, that are proving they can consistently outperform the traditional offerings and in many instances provide a hedge against any threat of inflation. Nowadays, investors have lost their confidence (not to mention a lot of money as well) in traditional investments, and are beginning to take advantage of the many profitable alternatives that are dominating the investment landscape.

investors accomplishment victory

Most alternative investment options are not correlated with stocks and bonds and as a result are not negatively affected when the inflation rates go up. In fact, the opposite happens. Their value actually increases making them a great addition to any investor’s portfolio. In fact, many established investment advisers and firms are now strongly recommending that a well-balanced portfolio contain a large measure of alternatives, to protect it against under-performing stocks and volatile market conditions; which are likely to lead to high inflation rates.

The investment landscape is definitely undergoing a massive shift as global alternative investments are now valued in the trillions of dollars annually, and the trend is expected to continue for years to come; particularly as the global economy continues to grow. For the longest time, the traditional method of investing into stocks and bonds ruled the financial world. While they didn’t always deliver a great investing experience, they were the only option at the time. Thankfully nowadays times have changed, and investors have discovered a wide range of profitable alternatives to choose from.