5 Alternative Asset Classes to Invest in Today
NEW YORK, October 28, 2022 (Newswire.com) - Amidst an ongoing economic downturn, investors are fleeing the stock market in search of alternative investment opportunities. Before the emergence of online alternative investment platforms like Yieldstreet, this would have been an incredibly difficult task for the average investor, but today it's as easy as identifying an alternative asset class that suits their objectives and finding the best option.
To help spark inspiration, here are 5 alternative asset classes available for investing in today:
Real Estate
In addition to being less correlated to the fluctuations of the traditional stock market, real estate has the advantage of being a diverse asset class that can provide investors with a wide range of opportunities. From purchasing an actual property or buying into a real estate investment trust (REIT), to renting out a vacant room in one's home, the real estate market has something to offer investors of all net worths and experience levels.
Art
Investing in art is one of the best decisions an investor can make during an economic downturn. For one thing, art investments have returned upwards of 360% since the year 2000, outperforming the S&P 500 by an impressive margin. And while almost no investor can afford to purchase the Mona Lisa, platforms like Yieldstreet provide easy access to fractional ownership of blue-chip artworks, allowing investors to gain exposure to the art world for an initial investment as low as $10K.
Private Equity
Private equity investments have a great track record for generating handsome returns, regardless of the economic landscape. And while investing in private equity often requires accreditation and a large initial investment, there are plenty of options available to non-accredited investors or those looking to get started at a lower price point. Options include online crowdfunding platforms that allow a pool of individual investors to fund a startup, or buying into an actively traded private equity ETF.
Cryptocurrencies
Despite their polarizing nature, cryptocurrencies have outperformed virtually all other asset classes on the market since their inception. Prices may not be faring well in this environment, but this can also be viewed as the perfect opportunity to gain exposure at a discount. Of course, past performance is never a guarantee of future performance, and investors who choose this asset class should be comfortable taking on a fair amount of risk, and be prepared to stomach wild price swings on a daily, or even hourly basis.
Peer-to-Peer Lending (P2P)
P2P lending has become an increasingly popular alternative to the traditional credit industry, and can be a great way for investors to earn passive income in the form of regular interest payments while they wait for traditional markets to cool off. However, investors should also keep in mind that the loans they provide on P2P platforms are largely unsecured, meaning they'll need to be comfortable taking on a loss in the event of a default.
Source: Yieldstreet