Market Volatility Causes Investments To Act Unpredictably
When investing, volatility is the enemy of investors. Volatile markets can cause traditional investments, like the stocks and bonds, to act unpredictably.
When it comes to investing, volatility is the enemy of the investment community. Volatile markets can cause traditional investments, like the stock and bond markets, to act unpredictably. Unpredictability makes investors feel uneasy and unhappy.
In finance, volatility (symbol σ) is the degree of variation of a trading price series over time as measured by the standard deviation of logarithmic returns. Historic volatility is derived from time series of past market prices. — Wikipedia definition
In a volatile environment, investment values can move sporadically; in both directions — good and bad. This makes it incredibly difficult for investors to determine whether they should sell their assets, or hold on to them. After all, a wrong decision made during times of market volatility can spell disaster for an investor’s portfolio.
To protect themselves from an unforeseen worst-case scenario, cautious investors are looking to diversify the holdings in their investment portfolio. Many are looking to introduce a variety of low risk investments that have proven they can outperform traditional assets, particularly when volatility strikes the markets. One such investment opportunity that has been increasing in popularity is 20 foot, 40 foot, and refrigerated shipping containers.
When investors invest in shipping containers, they are investing in worldwide economic growth and prosperity. They are investing in the consistent movement of trade to shipping ports across the globe. Anywhere in the world, whether the cargo containers are on a ship, truck, or train, these hard assets are supporting an increase in GDP everywhere. This is a long term dependability that appeals to most investors.
If they operate within a core industry, it is possible for certain investments to perform well in a volatile investment environment. A core industry, like container shipping, provides a steady demand for certain integral assets; like cargo containers. Because of the consistent, global need for these resources, this approach to investing ensures that investors are exposed to much more stability and less uncertainty.