People love investing. They love investing in things that the media tell them to invest in, like blue-chip stocks, index funds, bonds, etc. Many investors call these ‘traditional investment portfolios.’ They exist in the spectrum of conservative risk and medium risk-takers. However, these portfolios are more vulnerable to market changes than you think.
For example, people think that index funds are invulnerable to market changes. That’s an understandable notion because if you have risk in multiple companies, how can you lose in all of them. But today’s economic crisis has shown that. As a result, index funds can decrease in value and do so drastically.
So if index funds can decrease in value, every other golden standard found in people’s traditional investment portfolios has a good chance of decreasing. So what’s an excellent solution for this? Invest in alternative assets.
JP Morgan, one of the prime investment firms in the world, has said what every investor in the modern 21st century has been hiding from the masses: invest in alternative assets. Alternative assets are no longer an alternative, considering today’s economy, and it’s time for you to put some money into them. Here is some excellent alternative asset to make an impact in your investment portfolio.
Art has been a great investment for people throughout the years. It’s a tangible asset that you can enjoy and appreciate, and it often increases in value over time. For example, if you had invested in art in the early 1900s, your return on investment would have been remarkable. Your ROI grows even higher if you purchase an original piece of art.
Billionaires call art their prime deposit for their cash. They will always come back on their returns regardless of the economy’s state. But not everyone can afford original pieces of art. But collectively, people can invest in it.
Right now, you can invest in various pieces of modern art through various apps. You can gain a stake in them, and it’s much like having a blue-chip stock. A smarter move is to invest in cheaper pieces of art that have recently been out from art institutions. This is an excellent option for amateur investors cause they’re inexpensive and low-risk.
Art is also a great investment because it doesn’t correlate with the stock market. So if you’re looking for an alternative asset to put your money in, art is a great option.
It might be shocking to see something like real estate here, but it’s considered an alternative asset and a prime investment at that. In the past, people would invest in real estate to secure their financial future. They would purchase a property and rent it out to generate income. However, with the current market state, this might not be the best option for you.
It’s smarter to purchase properties now and hold on to them until the market rebounds. Prices are much higher now, and when it does rebound, you’ll be able to sell them at a much higher value than what you purchased them for
Just like art, real estate doesn’t correlate with the stock market. So it’s a great option for those looking for an alternative asset outside of stocks and bonds.
Natural Resources like Gold and Silver
Gold and silver have been around for centuries as a form of currency. And even though they’re not used as currency anymore, they still hold a lot of value. In fact, the value of gold and silver has increased significantly in the past few years.
This is because they’re considered to be alternative assets. They don’t follow the state of the world’s economy, so they provide you with stability during turbulent times. They’re also a tangible asset, so you can see and feel your investment.
If you’re looking for an investment that will hold its value over time, then gold and silver are definitely a great option. Just remember, when billionaires and millionaires panic, they invest in gold and silver, so you can never go wrong with these alts.
Lastly, there are hedge funds. Hedge funds are a type of investment that allows you to invest in a variety of assets. This includes stocks, bonds, real estate, and natural resources. So if you’re not sure what you want to invest in, hedge funds are a great option for you. They’re technically considered to be the index funds of alts.
So there you have it! These are some prime alternative assets that you can invest in to secure your financial future. It can be a robust combination of assets when done alongside your traditional investments. So make sure to put some money into these alternative assets right now!