Today’s market is witnessing a stock market that is climbing and bond yields depressed. In this environment, investors that have wide leeway to invest, or can afford to wait for better opportunities; may have a particular advantage. As a result of this, certain “go-anywhere” investments have attracted billions of dollars from investors over the years, by offering clear visions of how they can add value or how they can minimize losses; if traditional markets happen to take a loss. Because an increasing number of investors believe they should have the option to invest almost anywhere to protect their wealth, many appealing investment opportunities are rising in popularity.
To begin with, U.S. stock prices are closing in on record highs after the steady gains of the last five years. By classic yardsticks, such as price-to-earnings ratios, stocks are at least fairly valued if not overvalued, and pose a risk to investors. Realizing that they are unlikely to find any security in stock funds, much of the investment community is looking for some measure of protection against a steep market pullback. Additionally, while share prices in the developed world have surged in the last few years, emerging markets overall have been slowing down because of weaker-than-expected economic growth, a constant battle with rising inflation and the increasing threat of political upheaval. For value-hunting investors, this can mean the introduction of profitable investment opportunities.
A popular go-anywhere fund, $49-billion First Eagle Global Fund, have witnessed their cash holdings grow from 14% of total assets two years ago, to somewhere around 22% at the start of 2014, nearing the highest level in the portfolio’s 35-year history. Interestingly enough, the fund is currently allocating more time in researching opportunities in depressed emerging markets, clearly trying to uncover and seize the opportunities that are being presented; in those very lucrative sectors.
In the mind of most analysts, the shipping industry has already hit rock-bottom and is well on its way to a full recovery. After suffering through years of vessel over-capacity and falling container lease rates, global container shipping companies are finally in a position to better utilize their larger vessels, like the Maersk Triple E fleet, and make a strong effort to return cargo rates to pre-2008 levels. In fact, just recently it was suggested that container lease rates will rise incrementally, beginning in March of 2014. Some say that within a year it can be expected that the cost of leasing a shipping container will be nearly what it was before the financial crisis struck the world.
Aside from an increase in revenues resulting from a rise in lease rates, the demand for shipping containers is expected to continue to grow continuously, in an effort to meet the world’s economic growth figures. In some regions, Maersk expects as much as 5 percent growth in the need for shipping containers internationally. This spells big opportunities for the investment community. Especially for investors who are investing in maritime assets, like shipping container investments.
To addressing the industry’s nagging issues of over-capacity, many of the world’s leading container shipping lines have taken an rather unconventional approach. They have merged with their competition, to create formidable shipping alliances. The most notable being the G6, CKYH and the newly proposed P3 container shipping alliance. Each of these partnerships allows its members to share shipping resources on major trade routes, thereby improving over-all operating efficiency and increasing profits.
It has become more apparent that over the last several years, during the worst of the economic downturn, shipping industry leaders were building opportunities and exploring options, which have helped them emerge from the GFC stronger than when they went in. Collectively they have become more efficient and more profitable. This sort of positive performance is inspiring investors to learn more about Pacific Tycoon’s offer to invest in the global shipping industry and discover how to profit from economic growth around the world.