Thursday, 3 January 2013
More Investors Leave Traditional Investing For Alternatives
If you take a moment to review these two main investing options, the reasons that investors are flocking to alternative investments (hard assets in particular) and away from the traditional options; will become more and more apparent. Above all, it seems that the number one reason for the shift to investment alternatives, is the options' impressive track record, across the globe. For example, a comparison between shipping container investments and traditional stock market performance since the western financial crisis first began in 2008, has shipping containers returning above-average returns while stock markets have remained relatively flat; over the same time period. Many investors would consider that to be a pretty good reason right there to choose hard assets over stocks. One sector consistently delivers profits, while the other simply has not been performing.
Who can blame investors for abandoning their traditional methods if they aren't producing the desired results? After all, investing all boils down to revenues, income and profit at the end of the day. That is all that investors are concerned about in the first place. One other main point of difference between the two investment sectors, is the fact that they are not directly tied to each other, in the overall global economy. In other words, when stocks are down, alternatives investments are not affected by the adverse shift in the market's performance. In fact, history repeatedly shows that hard asset demand increases, each and every time the market struggles. Judging by the overall unstable and unreliable state of the global markets these days, it looks as though it could be a long time, before investors regain their trust and confidence; in any of the world's stock markets.