Many investors are growing tired of worrying about the poor performance of stocks and bonds in their portfolio. To relieve the pressure, a growing number are seeking alternatives to the traditional investments they hold.
At the top of the list of the most popular alternatives is investing in containers. There are three reasons for this investment’s rise in popularity.
- It is a hard asset.
- It produces income.
- There is a growing demand.
In the event of currency devaluation or rising inflation, hard assets have proven that they can protect your portfolio against losses experienced by traditional investments. In fact, hard assets are negatively correlated to stocks and bonds; meaning that they tend to behave differently and move in the opposite direction of equities. This is because hard asset investments have a fundamental, intrinsic value. Let me explain …
In the last several years, Warren Buffett has purchased two railroad companies, the Burlington Northern and Santa Fe Railroad. Why did he buy these? A railroad, like shipping containers, is a hard assets that makes money by moving other hard assets. Warren Buffett invested paper money into hard assets, so that if the dollar was to drop to zero it has no effect on his investment, he still owns a railroad!
Making an investment in hard assets is more appealing and much simpler than it was years ago. In today’s marketplace there are an increasing number of alternative investment opportunities that are easier to buy into, than stock was “in the old days.” A container investment is definitely one of the easiest.
People on a fixed income, like pensioners and retirees, would benefit greatly from investments that earned a steady revenue and supplemented their retirement.
The shipping containers that investors have invested in are leased to shipping and logistics companies, and generate a monthly income for transporting different types of cargo. The revenues generated from the lease of the containers provide additional income for the investor.
Over the lifetime of a container, which is 10 years or more, leasing revenues can add up to a large sum of money for investors.
As the world economy continues to grow, it can be expected that the demand for shipping containers will increase as well. With countries across the globe working toward increasing their GDP, more and more containers will be needed to facilitate their growing imports and exports.
In the last couple of years, two significant projects have contributed to the long-term demand for containers. The Panama Canal expansion and China’s One Belt, One Road initiative have revived trade routes and opened the door to more capacity, that will continue to support the need to ship cargo.
The most appealing aspects of an investment in shipping containers is that there is a constantly rising demand for the income-producing hard assets. Across the world’s busy highways, railways, and seaways, shipping containers are generating wealth for countries and investors.