The world has changed a massive amount in the last few months, and so has the economy. Industries that were once popular crashed, and new and rising markets abound. Everything you learned when you started investing isn’t working. It’s time to change tactics and turn to alternative investment practices.
Few if any investments are guaranteed, but some are less likely to tank than others. Stocks aren’t the most reliable investment, as the recent economic crisis proved. It’s a good idea to get your money into something more stable than the stock market, especially right now.
So, what is alternative investment management, and why should alternative investment be part of your portfolio? If you’re not sure, you’re in the right place to learn all you need to know. Read on for five alternative investment options that are big in 2020.
1. Owning a Business as an Alternative Investment
Starting a business might not feel like an alternative investment, but it fits the definition. Spending on a business before it turns a profit is making an investment. Because that investment isn’t through buying stock, it counts as an alternative investment.
Business ownership isn’t for everyone: About 20% of small businesses fail in their first year. Moreover, owning a business during the coronavirus pandemic is a huge risk. If you choose the right industry, though, this risky investment pays off big time.
2. Protect Yourself Against Inflation
One of the most frustrating parts about investing is that there’s nothing you can do about inflation. Due to the rising rate of inflation, it’s not uncommon for the value of investments to change even without changes in business performance.
The precious metal has been a bulwark against inflation since the beginning of modern money. Cash used to be tied to a “gold standard,” or an amount of gold that represented its value. Since that standard was eliminated, money relies completely on trust, making it volatile.
You can still ground your investments with gold and other precious metals, so consider picking up a share today. Keep in mind that buying stocks in gold and other metals and mining ventures can result in costly fees. Buying precious metals directly is a way for investors to avoid additional costs.
3. Alternative Investment in Cryptocurrency
Cryptocurrency is a smart investment right now because it is untied to the Dow Jones, S&P 500, and other stock market indices.
While the market has its ups and downs, it’s overall a stable investment and is growing in scale. More people are using and investing in cryptocurrency, leading to cryptocurrency regulations. As cryptocurrency standardizes and becomes more mainstream, investors should expect to see major retailers playing roles.
Contactless payment options are indispensable right now, and that’s one of cryptocurrency’s major strengths. The total lack of contact combined with the overall relative stability of the cryptocurrency market makes it an obvious choice for investors everywhere.
4. Monetize Your Hobbies and Collections
Because alternative investing is a broad category, it doesn’t often look anything at all like traditional stock trading. Alternative investments can be almost anything, from gold to a prized vegetable garden, and more.
In fact, you might already be an alternative investor.
Take a look at your possessions and hobbies. Do you make art or ships in bottles? Do you collect stamps, fossils, or cars?
If you have any valuable collections, you can count them as alternative investments. The relative worth of a creative alternative investment varies widely, so it’s vital that you do your research before putting more effort into an alternative investment. If you get it right, your hobbies and collections could rake in hundreds, thousands, or even millions of dollars each year.
Treating your own art and creations like alternative investments is a way to gauge how much they’re worth, too. Artists and crafters rarely know how much their art is worth, but keeping an eye on the market enables knowledge and opens the door to new financial opportunities.
5. Wine and Dine With Profit From This Investment
If you like a finely aged bottle of wine with your dinner, consider whether your next Chianti is worth more closed than it is open. Holding off a few more years could mean your wine is worth double what it’s worth now.
If you’re a lover of fancy wines, you should know that wine’s aging process develops monetary value just as quickly as it develops richness of flavor.
Make no mistake, the Trader Joe’s wine that you bought for $6 is highly unlikely to gain much if any value. What could make you rich down the road is an authentic French wine.
Still, not every authentic wine is worth a lot of money. Fake wines are common, so you need to be able to tell apart imitations. Fine wines also must have the proper temperature and atmospheric pressure in storage or the aging process could be ruined.
There are financial experts in the wine world, and if you’re considering an alternative investment in wine, you should seek someone who knows all the ins and outs.
Develop and Diversify Your Portfolio Today
Now that you’ve read about these five great alternative investment options, you’re ready to branch out into sectors outside of the stock market. Putting your money in the right alternative investment can put you on the road to success, even as others struggle with changing conditions.
As you continue to develop and diversify your portfolio, consult our site for more advice. Our curated library of business news and advice is designed to help you make money, so take a look around and reap the benefits today.
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