The current market is in such a state that you may be tempted to just give up on investing altogether and keep what you have right now. However, this is not advised unless you want to miss out on the chance to strike it big. If your portfolio has been taking high damage hits in the recent years, now is the time to patch it up and get it back in the game so as to take advantage of it when the market looks up soon.
Alternative investments are those in which you invest in something other than typical stocks and bonds. This includes assets such as creature comforts, annuities and even property. These investments can be used to your advantage when you are trying to fix the smoking ruin that was your once-strong portfolio. There are many alternative forms of assets that you can invest in when you are looking to repair your portfolio. Here are some of them:
Although many people see it as the reason behind the first recession of the 2000s, it still has the capacity to be a good addition to your financial portfolio. While there isn’t a big demand for housing in the current market, there are a number of REITs or Real Estate Investment Trusts that are there to help you invest in property while negating your risk of being impacted yet again. These trusts have helped a huge amount in the stabilization of the real estate market, serving to reduce its volatile state and bring back increased returns on investments.
The economy is slowing down. We have all seen the telltale signs of it. However, a lot of people, especially experts, see this as a sort of calm before the storm. When inflation does hit again, you need to be ready for it. The market is like a wave graph – ups and downs over the years. Treasury Inflation Protected Securities (TIPS) are the perfect way to do this. All you need to do is invest in some of these and you are protected against sudden jumps in the inflation rate. While the rate of return is constant, the amount returned is calculated taking current inflation into account as well.
The price of commodities increases with inflation. This means that, like stocks, buying and selling these at the right times can result in quite a high yield for you. Since inflation impacts the return on stocks in a negative fashion, you can balance out the losses you may suffer by trading in commodities you previously invested in. In addition to this, this sort of investment serves another purpose as well. It allows you to diversify your portfolio greatly, meaning that you have your eggs in multiple baskets so that at least a few will hatch for you!
There are many other types of assets you can invest in other than commodities, real estate and TIPS. Doing a little research or even consulting with a reputed investment advisor can do you and your portfolio wonders. Remember to always try to stay ahead of the curve when investing. Invest in the future; not the present.