Hard Asset That Generates Income, Pays Consistent Returns

In the face of political upheaval, war, and economic uncertainty, investment seekers are searching for investing options that, if faced with the worst case scenario, will offer them a degree of protection. At the moment, many investors see traditional investments – like stocks and bonds – as very risky and (in some instances) significantly overvalued. This has encouraged much of the investment community to move their holdings toward investment alternatives, and avoid unnecessary risk.

One of the most popular classes of alternative investments available to the international investment community is hard assets. This class is comprised of tangible items like shipping containers and collectibles (i.e. fine wine), that are appreciable and observable by investors. In most instances, these opportunities are managed and maintained by an asset manager, just as traditional investments are handled by fund or money managers. This is accommodating to people with a low tolerance for risk when it comes to investing their money.

Another investing strategy that has become increasingly popular with investment seekers is income generating investments. These are options that provide investors with consistent investment earnings. For some, this can be used to supplement income or reinvested to build wealth more quickly. In either case, investors appreciate earning steady money from their investment. It is satisfying and encouraging to move closer to investing goals.

For investment seekers who are interested in a hard asset that generates income, shipping container leases pay consistent returns to container owners. This option has been compared to rental income earned from real estate investments. The advantage of owning shipping containers over real estate is that containers are mobile and can be repositioned to the most prosperous regions across the globe. Commercial and residential properties obviously cannot.

When preparing an investment strategy, investors should carefully consider the performance of each asset in their portfolio, and measure the contribution made to achieving financial goals and investing success. Those investments that fail to demonstrate value should be sold and replaced with investments that avoid financial crisis and deliver steady returns.

Investors Concerned With Traditional Investments’ Performance

An increasing number of investors are growing concerned about the performance of the traditional investments in their portfolio; in particular, their stocks and bonds. Their foremost concerns are that stocks are overvalued and bonds are risky These are two very unappealing scenarios for cautious investors.

Stock Market

In recent years, countless investing surveys have been conducted. Of the people who responded, nearly half believed that the stock market is overvalued. According to the analysts, the current market is the second longest Bull Market of all time. Historically, the S&P 500’s mean P/E ratio is approximately 15. At the moment, it is in the mid-twenties.

Some financial advisers are of the belief that the markets are overdue for a pullback. With that being said, many believe it will emerge as a correction within the existing Bull market, and not surprise the world with another global financial crisis. Many are saying that they expect to see a 5% to 10% pullback in the stock market.

Bonds

Interest rates and bond prices enjoy an inverse relationship. As interest rates rise, the price of bonds is likely to fall. Conversely, when interest rates fall, the price of bonds trading in the marketplace generally rises. Also, if the cost of living and inflation increase dramatically, and at a faster rate than income investment, investors will see their purchasing power erode and may actually see a negative rate of return.

Aside from interest rate risk, which is the most widely-known of risks in the bond market, reinvestment, default, and liquidity risk should also be closely considered when choosing whether or not to pursue a bond investment.

Alternatives

In recent years, alternative investments have found an important place in a well-balanced investment portfolio. The investment community has taken the opportunity to invest in containers and other hard assets, that emerged relatively unscathed from the last financial crisis. In the absence of viable options from traditional investments, investment-seekers are finding alternative investments to be much more appealing.

Shipping Containers Top List of Income-Generating Investments

A growing number of investors are seeking investments that will put their money to work and generate a stream of income. Most are looking for an investment opportunity that can supplement a fixed-income, like a disability or retirement. Regardless of the motivation, the demand for income-producing investments is rising.

At the top of the list of income-generating investments is shipping container investing. This is an investment in a hard, tangible asset that is used globally to facilitate trade. Different types of shipping containers can be found working on trains, trucks, and ships, all around the world.

With the help of a container investment and leasing company, investors can own a fleet of hard-working cargo containers and earn a monthly income for themselves. The shipping containers purchased by investors are deployed by the leasing company on busy trade routes between the continents and shipping ports of the world. Employed by shipping industry leaders to meet the import and export demands of countries around the globe, these cargo containers spend years crossing the world’s oceans and seas.

The expected lifespan of a new shipping container is more than a decade. So, an investment in shipping containers could deliver monthly returns for 10+ years! This time period, and associated risk, is comparable to an investment in a Treasury bond. The thing that differs most between the two is the rate of return. When you invest in containers, they generally pay between 10 percent and 15 percent for the duration of the agreement, whereas a bond will yield approximately two percent over the same time frame. Moreover, investing in shipping containers provides a monthly return in the form of lease income; bonds do not.

Despite increasing talk of protectionism in the United States, other economic giants – like China and India, the U.K, Canada, and the European Union – are moving ahead with free trade deals that remove many of the tariffs and taxes that impede economic growth. Over the next half-a-century this will create a rising demand for shipping containers to transport cargo to emerging markets and developed countries alike. Count on this to produce a dependable, long-term income for container investors.