With the events in early February 2018 clear in their mind, stock market investors are once again rethinking the allocations in their investing portfolio. For most, traditional investments – like stocks – are posing more risk than ever to their wealth. To address this growing threat, much of the investment community is turning their attention to the safety of alternative investments to help them reach their financial and investing goals.
Over the course of the last decade, the alternative investment landscape has evolved to include many appealing options such as private equity, collectibles, and shipping container investments; to name only a few. This class of investment is populated by options that are widely regarded as business opportunities, as opposed to the traditional manner in which investors invest. Because of this, there is no longer a need for people to rely upon money managers to make investments on the investor’s behalf. These alternatives allow the investment community to take back control of their portfolio, and navigate their own financial future.
Alternative investments give investors more control over their money, their profits, and their returns. In addition to that, alternatives often provide a physical object/s that can been seen, and in some instance enjoyed by investors. This is perhaps the most appealing thing about these investing options. The fact that an investor can see what they are investing in, goes a long way to increase their confidence in the investment.
For investors who are looking to make the move away from traditional investments, alternative investments offer sanctuary from the volatility and uncertainty of the bond and stock markets, not to mention the turbulence associated with bitcoin and gold. After a decade of struggling for gains, investors are tired of the constant strife associated with conventional investments. Nowadays, they want alternatives, options, and choices.
If you are an investor in the stock market, you must be aware that analysts believe the United States’ stock market is overvalued, and due for a correction. At this point in time, it would be wise for you to carefully review your investing portfolio and sell investments in the stock market that pose unnecessary risk to your financial security. This will leave you with vacancies in your investment portfolio that need to be filled, as soon as possible.
When you are looking for new investments to introduce to your financial portfolio, be mindful of your investing road map, as well as the strategy you have in place to achieve your investment goals. For example, if stock you own pays dividends, you will need an income generating asset to immediately replace it. This is particularly important if you are using investments to supplement your income.
Among the leading income producing investments in the marketplace are hard assets. This class of investment includes investing in containers, collectibles, and real estate; to name few. Investors consider these to be a much more appealing option because they are tangible assets, that can be seen and touched. For many investors, this lowers the associated risk and raises the investment’s overall appeal.
When choosing investments, there is an enormous amount of research that must be done to satisfy your questions about risk and return. At the moment, you have likely discovered that the stock market is in a precarious position, and that poses a risk to the investors – yourself included – who have investments in stock. To avoid a financial crisis when the markets correct themselves in the near future, stock market investors should move away from the perils of Wall Street and invest their money in safer investment options, with similar or greater investing rewards.
An increasing number of alternative investments are proving they can outperform traditional options and in many instances provide a hedge against inflation.
There are two words that can send shivers down the spine of a stock market investor; Market volatility. This is because the global stock markets are directly tied-in to the inflation rate. Whenever inflation rates rise, the overall stock market values decline.
In the last five years, the markets have been extremely volatile in the wake of the Global Financial Crisis that devastated many global markets, and crippled the world economy. Millions of investors lost billions of dollars leading to (what some people are calling) The Great Recession of the 21st century. Unfortunately, there are still some lingering negative effects, particularly highlighted by the financial/economic problems currently being experienced in Greece and Cyprus.
There once was a time not long ago, when the only choice investors had was to take a gamble on the stock market and fill their portfolio with shares. Thankfully that strategy has become less popular with the emergence of an increasing number of alternative investment opportunities, that are proving they can consistently outperform the traditional offerings and in many instances provide a hedge against any threat of inflation. Nowadays, investors have lost their confidence (not to mention a lot of money as well) in traditional investments, and are beginning to take advantage of the many profitable alternatives that are dominating the investment landscape.
Most alternative investment options are not correlated with stocks and bonds and as a result are not negatively affected when the inflation rates go up. In fact, the opposite happens. Their value actually increases making them a great addition to any investor’s portfolio. In fact, many established investment advisers and firms are now strongly recommending that a well-balanced portfolio contain a large measure of alternatives, to protect it against under-performing stocks and volatile market conditions; which are likely to lead to high inflation rates.
The investment landscape is definitely undergoing a massive shift as global alternative investments are now valued in the trillions of dollars annually, and the trend is expected to continue for years to come; particularly as the global economy continues to grow. For the longest time, the traditional method of investing into stocks and bonds ruled the financial world. While they didn’t always deliver a great investing experience, they were the only option at the time. Thankfully nowadays times have changed, and investors have discovered a wide range of profitable alternatives to choose from.
Even though gold is at its lowest value since 1980, analysts warn that it should not be used to predict the future performance of other hard assets.
On April 15th, 2013 gold dropped in value more than 9 per cent, resulting in the biggest one-day fall, in 33 years. Moreover, some analysts believe it could drop an additional $100 in price per ounce, in the near future. Needless to say, this has many gold investors worried and some are even rushing to sell-off their gold assets. One fundamental of investing is that all investments carry a certain measure of risk. And nowadays, it appears that gold is no exception to this rule.
For many years gold has been considered to be a good hard asset investment for the most part. Historically it has increased in value decade after decade, and some say is likely to continue that trend by the end of this decade. But for the immediate future, gold investors will likely have to hold onto their investments; until the price goes up again. How long will it be is anyone’s guess at this point, but many experts agree it is inevitable. Until such time, investors have to be patient and not panic and sell their gold assets, which could result in a further drop in value and no gold investor wants to contribute to the assets further decline.
Gold is just one of the many hard asset investing opportunities available in the market today. Hard assets, like precious metals and gemstones, have always been considered less risky than traditional options; like stocks, bonds and even the often recommended real estate investments. As a matter of fact, many investors favor them because they are not directly correlated with the stocks and bond markets and thus are not affected by inflation, in the same way that traditional investments are.
Hard assets are essentially the materials that are needed in the manufacturing of all the world’s consumer goods and transport requirements and have always been in strong demand to facilitate the steady growth of the global economy, decade after decade. This is a fundamental reason why these investments are appealing to investors. In most instances, investors know that their investment is in an asset that is in constant demand worldwide and is expected to continue that way for many years into the future, resulting in long-term investment success.
Much of investing is about speculating which direction the global economy will take. Yes, the price of gold is down at the moment, but many investors believe it will bounce-back again. Some believe it will make a comeback in an even bigger way. In fact, there are a few market analysts that have predicted the global economy will double in size by the year 2020 and in turn, the demand hard assets (like gold) will rise to facilitate the massive growth. As you can imagine, these positive forecasts mean good news for anyone who has made an investment in hard assets.
Time and again, alternative investments have demonstrated to investors that they can out-perform stock market investments, by a growing profit margin.
When it comes to investing in the stock market, it is widely recommended by leading investment experts to “buy low and sell high.” Realistically this is (of course) the best case scenario, and hardly a fool-proof plan for investing. Let’s stop for a moment and consider how many investors did not get the opportunity to sell their plummeting stocks, when the global financial crisis began to unfold in 2008. At that time, many unsuspecting investors suffered significant losses, not just in terms of their assets but to their confidence and trust in the established traditional investment model; as well. Because of this, many investment-seekers regard stocks and bonds as a very risky investment strategy, and are moving away from this traditional investment offering.
There was a time when the traditional investing methods were seen as the only investment option available to private investors. Nowadays, thanks to the abundance of profitable alternative investment options now available in the marketplace, that fact is changing. Over the course of the last five years (since 2008), alternative investment offerings have been emerging and demonstrating to the investment community, that they can consistently out-perform risky stock market investments by a very attractive profit margin; that (to the surprise of most) continues to widen. As investment alternatives have become increasingly more popular with the international investment community, the traditional options like the stock market have been losing long-time investors, to offerings with lower investing risk and more favorable returns.
In most instances, those investors who have invested in established alternative investments are now enjoying better-than average returns, both consistently and constantly. Because of this, most have absolutely no intention of selling-off their investment, at any time in the near future. In fact, many investors have come to realize the long-term value in keeping their alternative holdings. It is what happy investors are more commonly referring to as, “receiving a great return on investment.” With that being said, the mass exodus out of traditional investments is underway and discouraged stock market investors are becoming more and more inclined to sell-off their risky stock investments, regardless of whether it is the “best time” to do so or not.