Shipping Operates Independently of Traditional Investments

The financial turmoil in Chinese stock markets is a reminder that traditional investments, like stocks, are a very risky investment. Investors are (again) getting the opportunity to see first-hand the influence that politics and corporate officers can have on their portfolio’s performance; as though anyone would need a reminder of the Global Financial Crisis less than a decade ago.

2008 gfc tina brown vampire squid quote

The 2008 financial crisis is usually attributed to vampire squid greed. There was certainly a lot of that. – Tina Brown

In the absence of appealing alternative investments that operate independently of traditional markets, an investor is at the mercy of international economic and business affairs that are well-beyond their control. Without the diversification offered by investment alternatives like investing in shipping containers, an investor’s wealth can disappear quickly and without warning; or even the opportunity to react. When a domestic or foreign market drops suddenly, most investors with portfolios that are heavy with traditional investments are left helpless.

financial crisis professional investor good amateur bad

A financial crisis is a great time for professional investors and a horrible time for average ones. – Robert Kiyosaki

When it comes to embracing nontraditional investments, the greatest challenge for many investors is overcoming the fear of the unknown. The fear of not knowing whether an investment is a scam or not. In order for investment-seekers to gain the confidence they need to pursue these new offerings, it is important for them to conduct in-depth research in an effort to understand and appreciate the advantages of shipping container investments, and the other well-established alternatives available.

financial crisis transparency disclosure jack reed quote

The financial crisis is a stark reminder that transparency and disclosure are essential in today’s marketplace. – Jack Reed

With the increasing political turmoil, corporate greed, and uncertainty in traditional assets across the globe, it will take less time for investors to overcome any apprehensions about alternative investments, and reassess their position on the performance of their existing assets. The growing evidence that traditional investments hold the greater risk will present a very compelling argument for a nontraditional, alternative approach to investing.

Make an Investment in The Top 3 Shipping Stocks

The shipping industry is in a better position now then it has been at any time since the global economic crisis in 2008. Additionally, private equity firms have taken notice of the change, and have invested more than $14 billion in shipping companies; in the first half of 2014.

This means that it is a great time to consider adding shipping industry investments to your stock/investment portfolio. That said, here are 3 of the leading container shipping stocks:

Nordic American Tanker Ltd (NYSE: NAT), is a solid long-term investment. Currently, the company has a fleet of 22 Suezmax vessels to transport crude oil around the world.

With the decrease in crude oil costs, the company is saving $12,000 per day per vessel on fuel consumption.

Additionally, lowered oil prices created higher demand, making this an almost recession proof shipping company.

The 7.20% dividend yield makes this investment even more appealing.

SeaSpan (SSW) provides bunkering, ship repair, and ship building services.

The company just initiated a dividend yield, and expecting earnings of $.26 per share on $184.30 million in revenue for the quarter.

Global ship building continues to go strong, and when that recedes many shipping companies will need repairs for those ships.

Just like the ones who ultimately made money in the gold rush, were the stores. The shipping repair companies are poised to profit in global shipping.

MAERSKb.CO is the final company we are discussing today. When investing in a container shipping company, it might as well be the biggest container shipping company in the world. In terms of longevity, A.P. Møller-Maersk is very likely be around for many years to come. Moreover, the company is in the midst of a growth spurt, with new Triple-e ships on the way.

The company’s container shipping division – Maersk Line, has agreed to the new 2M alliance with the Mediterranean Shipping Company, which guarantees the alliance a 30% share of the international shipping market.