About Abbie Moore

Abbie is a Finance/Investment blogger sharing market experience and investing advice at American Financial Services Associates in New York City, New York.

Can Investments in Global Trade Reduce Investing Risks? Yes.

investors ask abbie questionsBefore making an investment in global trade, it is important that you understand what it is. Quite simply, global trade is the total amount of consumer goods being sold across the planet. So, how does an investor invest in this ever-expanding business? Well, the great news is that it is no longer an investment secret and it is actually very simple.

As international trading increases year after year (estimated to be 4.7 percent growth in 2014), the exchange of goods and services continues to flow through established entities like ports, shipping vessels, trains, trucks and various other cargo supplies. In order to participate in this international exchange, you must either own a shipping line, purchase shares in the railway industry, or find a way to purchase small assets that are used throughout the entire trade process; like shipping containers for example.

Many investors are unaware of the fact that they can buy and lease shipping containers for international businesses to employ (and pay for the service), allowing them to earn a steady profit while other people exchange goods. This is how investors can participate and contribute to global trade itself and earn steady returns while the world economy prospers.

According to the U.S. Chamber Of Commerce, over 97 percent of the 302,000 companies that export goods from the United States are small to medium sized businesses. This means that firms that do not have the necessary financial infrastructure to handle their own shipments of cargo, will increasingly seeking help from shipping lines. Although the exact global figures are not known, the fact that 97 percent of American export market utilizes some aspect of infrastructure and/or maritime assets to get their products from one area of the country to outside markets, should be a great indication that the demand for shipping containers will remain well into the future. This long-term dependence upon the shipping industry and cargo containers, eliminates many of the risks and uncertainties that are associated with investing today.

The total value of goods exported from the United States totaled more than $2.3 trillion. When you consider that over 80 percent of the world’s purchasing power, 92 percent of economic growth and 95 percent of the world consumers live outside the United states, it is very appealing to consider investing in the global trade of consumer goods.

Shipping Containers Among Alternative Investments Available

exciting investment optionThere are an abundance of options when it comes to making an investment. From stocks and bonds to cash deposits, to the vast array of alternative investments now available, investors have more choices than ever before. And, given the fact that stocks and bonds are considered to be quite risky and have delivered flat returns for the half-a-decade or more; alternative opportunities have proven to be a wise investing strategy. This has been demonstrated by providing investors with steady returns and a great investing experience throughout the global financial crisis.

One such investment that has delivered above-average returns time and again has been shipping containers. These investments are hard assets that correlate directly with global economic growth and are not influenced by the performance of stocks and bonds and therefore provide an element of protection against inflation. They are a relative simple investment to understand and as the world’s economy grows, so will the demand for shipping containers. These factors have encouraged an growing number of international investment community members to review a container investment, and thus has contributed to their steadily increasing popularity across the globe.

When making a shipping container investment an investor purchases one or more of their own shipping containers and then the containers are added to a container leasing company’s active roster. The shipping containers are always in constant demand from international manufacturers and shipping industry leaders all around the world. In exchange for their contribution, container leasing firms are offering investors impressive annual returns, that generate a monthly investment income for the duration of the lease agreement.

As industry analysts forecast that we will experience a doubling of the world’s economy by 2020, the demand for shipping containers is expected to increase significantly and continue to deliver consistent returns to shipping companies and container investors. In the world of business, profits are motivated by supply and demand. In the world economy, it is all about delivering the supply when it is needed. This is the important role shipping containers play in the global economic outlook for 2014 and beyond.