Investment Strategy

Elias Karakitsos and Lambros Varnavides
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Elias Karakitsos: University of Cambridge
Lambros Varnavides: Royal Bank of Scotland

Chapter 10 in Maritime Economics, 2014, pp 328-341 from Palgrave Macmillan

Abstract: Abstract The investment strategy implications of this book are that an owner should have the optimum fleet and be in the spot market during a bull shipping market; and should keep the fleet at a minimum to cover fixed expenses and be in the period market during a bear shipping market. The strategy switches at the turning points of the shipping cycle. Chapters 6 and 9 show that a necessary condition for owners buying ships and moving from the period to the spot market is when the world economy starts to rebound, while a sufficient condition is when the fleet capacity utilisation has bottomed. A practical way to decide whether these conditions are met, is the distribution of earnings (see below).

Keywords: Central Bank; Investment Strategy; Profit Margin; Spot Market; Spare Capacity (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-38341-9_10

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DOI: 10.1057/9781137383419_10

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