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).
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© 2014 Elias Karakitsos and Lambros Varnavides
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Karakitsos, E., Varnavides, L. (2014). Investment Strategy. In: Maritime Economics. Palgrave Macmillan, London. https://doi.org/10.1057/9781137383419_10
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DOI: https://doi.org/10.1057/9781137383419_10
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-137-38340-2
Online ISBN: 978-1-137-38341-9
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)