The global financial ecosystem has been going through a lot of turmoil as of late. Some countries decide to start the war against cash, whereas other regions see hyperinflation and falling stock prices. Alternative investment opportunities are becoming more important than ever, and there are quite a few options to choose from. None of these options will guarantee a profit, and people should always do their own research before investing.
#4 Real Estate
Although real estate markets have seen quite a bit of negative attention throughout 2016, it is still one of the most profitable alternative investment markets. Moreover, there are signs of a recovering real estate market, which hints at future profits waiting to be made. It is a great way to diversify one’s portfolio, as there is always a large demand for living accommodations around the world.
Do keep in mind making an investment in real estate is a costly business. Buying a house or apartment is not cheap, yet it can generate a lot of “passive income” over time. Another option worth exploring is to invest in a real estate investment trust, although that always carries its own set of risks.
One of the most obvious choices for alternative financing is gold. Bullion has always been a safe haven asset during times of financial turmoil. Even though gold prices have been feeling a bit, it is still a commonly preferred form of investment vehicle. Although gold is unwieldy and difficult to transport across borders, it has a certain mainstream appeal.
#2 Peer-to-Peer Lending
An emerging trend in the financial sector is peer-to-peer lending, also referred to as social lending. Borrowers and lenders operate outside of the realm of traditional finance, which offers many great advantages. People are always in need of money, even though there is a risk of loans not getting repaid.
At its core, a borrower gets loans at far better rates than what banks can offer. Lenders will earn higher returns compared to storing funds in bank accounts. But without an authorized body to oversee this activity, a lot of people tend to overlook these opportunities. Always do some research before extending a loan to someone, as a lot of money could be at stake.
Bitcoin is one of the most promising investment vehicles of all times. Even though the market can be very volatile at times, Bitcoin was the best performing currency in recent years. Interested parties can opt for centralized or peer-to-peer exchanges to buy and sell cryptocurrency without friction.
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