The stock market is out of style. Thanks to the trillions of dollars lost in the 2008 recession, many families are looking for different ways to invest their assets. According to the Wall Street Journal, the percent of American families investing in the stock market has dropped by more than 10 percent to 46 percent.
If you find yourself looking for an alternative investment market or other opportunities to spread your risks, one of the options below might be a good fit for you.
If you are running away from the stock market because of the last recession, real estate might be the least attractive option for you. However, it has traditionally been a popular way to build up your family equity. Two popular ways for real estate investing is in the rental market and REITs. These investment options give you the chance to move into real assets and both have been popular with those looking to invest outside the stock market.
It might sound strange, but you can buy money and earn a profit. Obviously, you aren’t going to find a bank that is going to give you $1.25 for handing over four quarters. However, global currencies will gain or lose value when stacked up against each other. Thus, trading on the Forex market has come into existence. Investors trading in currencies attempt to buy low cost currencies, then trade when the currencies grow in value.
If national currencies don’t strike your fancy, perhaps precious metal will change your mind?
Gold isn’t just desirable for jewelry; it’s a great conductor of electricity and is used in expensive electronic circuitry. This makes gold a highly valued commodity to luxury dealers and electronic manufacturers. It’s also been a common investment in economies for centuries.
Investors in gold generally invest assets in three ways: buying physical gold, buying stock in gold companies and gold ETFs.
Why bother with using a broker. If you have enough assets, there are plenty of entrepreneurial ventures to fund. So long as the new business venture pays off, you’ll be rewarded with a good return on investment.
Of course, this is all easier said than done. There are plenty of poor investments chasing after funding and legal paperwork to further complicate the investing process. However, there are plenty of clubs and groups that pool venture capitalists. These organizations help investors find reasonable investments and legally structure deals to be equitable to entrepreneurs and investors. However, you generally need a large amount of money to get into these groups. It’s not a common option for your average investor.
Don’t want to invest in the stock market? No problem. There are plenty of alternative investments to choose from. However, you need to understand that every investment has risks and some of the options above pose larger risks than a well diversified stock portfolio. Many of the options above also require a larger time commitment than buying a handful of mutual funds. It needs to be noted that stocks are popular because they offer simplicity and risk mitigation and these two characteristics are not true of all alternative investments.