5 Alternatives to Investing in Stocks You Should Consider
Thursday, May 31, 2018, 6:00 AM | Leave Comment
The term investment often gets equated with the idea of investing in the stock market, which is hardly your only solution.
In fact, by purchasing a bottle of quality wine and sitting on it for 10 or 15 years, you can multiply its price several times over.
In other words, you don’t really need something that’s out there on a volatile market.
All you need is an asset that’s currently affordable, but is expected to rise in price in the near future.
Nevertheless, not all investments are about increasing your assets; some are merely there to diversify your portfolio and ensure that you maintain your wealth for years to come.
With this in mind, here are 5 alternatives to investing in stocks you should seriously consider.
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Forex trading
For those who hate the idea of investing their money and waiting for weeks, months or years for the investment to pay off, something as dynamic as forex trading might be just the thing.
Day-trading is a particularly great idea, seeing as how you never leave your investments pending overnight. In other words, losing sleep over a questionable trading decision is never really a concern.
Profit margins here are as low as 5 percent per trade, while loss margins are somewhere at 1-2 percent. In other words, it is more of a side-project than an actual investment and it’s not nearly as risky as some people would make it out to be.
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Art
Those who recognize a rising artist may purchase their piece for a relatively low price and then watch as the value skyrockets over the course of years.
Unless you decide to overinvest on a hunch, this is a deal in which you can’t really lose that much value.
Sure, purchasing a sculpture as an investment is not the same thing as buying a piece for your home, but if you buy something you like, you can use it as a decorative accessory and forget it was ever really an investment. That is, until the time comes for you to finally collect.
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Gold
The reason why gold is such a great investment option is due to the fact that it diversifies your portfolio.
When a moment of crisis strikes, people lose faith in corporations and currencies, and turn to precious metals.
For this reason alone, most people hold 10 to 20 percent of their assets in precious metals. Furthermore, you don’t have to invest in bullions that are heavy and hard to carry.
You can start with something lighter like gold coins and work your way up. These coins can be kept in a bank vault, locked in your own safe or even displayed in a locked glass cabinet in your living room.
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Private equity
Those who still feel the need to invest in a company, but don’t want to go on the stock market can always find private equity to invest their money in.
In most cases, we’re talking about startups (especially tech startups), which means that you can easily become one of the chief investors in a rising startup at a relatively low cost.
The greatest downside of this investment plan lies in the fact that investing in small businesses is often quite risky.
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Cryptocurrencies
The good news for cryptocurrency investors is that, unlike several years ago, this trend is now widely discussed, which means that there are more resources for a layman to do their independent research of the topic.
Nowadays, even people who want to invest in ICOs have the privilege of getting informed from multiple sources, which makes the information they receive somewhat more reliable.
Still, this market remains too volatile for a lot of people.
Conclusion
The reason why the alternatives listed are valid investment choices is mostly since they help keep you covered regardless of the situation of the market.
Once stocks and currencies start falling, gold will pick up. As a private equity company you’ve invested in starts dropping the ball, that art piece will start gaining in value. Overall, you’re covered in every situation possible.
Throw us a like at Facebook.com/doable.financeAuthor BIO
Dan Radak is a marketing professional with eleven years of experience. He is a coauthor on several websites and regular contributor to BizzMark Blog. Currently, he is working with a number of companies in the field of digital marketing, closely collaborating with a couple of e-commerce companies.
