Today is a day in which the stock market is on the rise. Investors are seeing huge returns on their stocks and it is probably not the best time to bring alternative asset classes to the table. However, if you are a good investor, you know that there is one thing more important than all else: planning ahead. While the market for stocks is currently in a bull stage), it will soon, predictably return to a bear market. The cycle continues as it always has and always will. In order to counteract the effects of this, you really need to consider investing in assets that aren’t related to the stock market.
A good example of these forms of investments are real estate investments which aren’t very popular right now. Considered the bane of the economy since the great recession of the 2000s, real estate still isn’t referred to without a shudder that resembles a wizard saying Voldemort’s name. in addition to property investment, there are a couple of other assets that you could lend your money to in order to get better returns in the future, when the bear market comes around to…well, bear.
Peer to Peer Lending (P2P) is a form of investment that is beneficial to both lenders and borrowers. It is one of the best forms of alternative investments to make. Basically, it is a way of lending money without bringing the bank into it. This means that the investor, or the borrower, has a higher rate of return, and the borrower needs to pay lower interest rates and additional fees. This makes it easier for the borrower to pay the loan back, because the amount isn’t as much as it would be from a bank. Also, there is a tiny bit of guilty pleasure to be taken from “stickin’ it to the Man” as the hippies say.
Gold and silver, among other precious metals, are considered some of the most debated assets to invest in. On one hand, there are the people who consider them to be the Holy Grail of investments. On the other, there are people who look upon precious metal investment as a horror story not to be revisited. The fact of the matter is that it is balanced between the two extremes. The con of investing in gold and silver is that these metals only rise in value when very specific market conditions are fulfilled. They don’t just skyrocket when the stock market dies.
Real Estate is King
In the end, the ultimate alternative asset class is always going to be property. It is a true asset, because it is one of the few that you can actually touch at any time. Heck, you could pitch a tent on it if you wanted to, or even live on it. It is going to be in high demand soon too, as global populations rise and the need for shelter becomes more urgent.
So, while there are plenty of alternative investments out there, it can be said that P2P lending is probably one of the nicest and easiest to do, with relatively low risk. Precious metals are an option too, but require careful management. While property does have risk associated with it, the returns are nearly guaranteed, and this is ultimately the king of the alternative investment classes.