For investors in the stock and bond markets, the news that the Dow Jones Industrial Average just suffered it’s biggest drop in one day this year would certainly cause some nervous moments. It fell by 353.87 points or 2.34 percent one day after U.S. Federal Chairman Ben Bernanke stated that the U.S. government would be scaling back on their stimulus measures if the American economy improves in the near future. To put things into perspective, the drop in value represents a direct loss more than $120 billion of investors’ capital and the one-day drop virtually wiped out all the gains the Dow made in May and June combined.
Of course it had a ripple effect on the other major stock exchanges around the world including European and Asian markets which saw the Japanese Nikkei down almost 2 percent. Also the South Korea and Shanghai markets traded close to their 2013 lows. This is what happens when the world’s stock and bond markets are closely tied with one another. When one has a bad day they all seem to. For investors all over the world with any type of stock or bond holding, every-time they hear news like this it must cause them great concern. That is the last thing an investor wants with their investment, to always be concerned. It seems that the last five years, stock investors have been going through this almost daily with all the ups and downs, and unfortunately for most it has been mostly down as of late.
Even a change in the inflation rate can cause the markets to go up or down. Stock investors’ heart-rates and blood pressure must rarely be consistent with so much fluctuation in the world markets. One of the big challenges with stock markets is that they are all; based on future speculation and their value is being recalculated virtually every millisecond moving forward in time daily. For investors in hard assets for instance, they do not concern themselves with the hourly or daily fluctuating values because their investments are constantly in strong demand and are projected to be for years to come as they are essential to the growing global economy. As well, hard assets are not correlated with the stock and bond markets and are therefore not affected by negative inflation rates. These factors alone are very appealing to a growing number of global investors and many have been taking advantage of the opportunities now in the market.
There has been a mass migration into alternative investments since 2008 when the global financial crisis first began. Trillions of dollars have been invested in many profitable alternatives, with hard assets being one of the prime options. In today’s markets there are other alternatives to investing in the traditional stock and bond markets. One that has been increasingly gaining in popularity, is shipping containers. They are always in demand and the demand is expected to double by 2020. They are essential to the facilitation of the entire global economy, and have been consistently delivering investment returns to investors, year after year. Some good investment research will go a long way in finding a reputable container management firm, that can accommodate an investor’s needs and help them meet (and often exceed) their investing goals.