Consider alternative investments
While stocks and bonds are essential to most balanced investment portfolios, consider allocating a part of your funds toward alternative investments. The non-traditional investments can outperform most other asset class in certain market conditions.
Gold and other precious metals are an all-weather alternative investment which can do particularly well when economic uncertainties are at their peak. Investment in renewable energy companies is another option you can consider. If real estate appeals to you, real estate investment trusts (REITs) or a direct investment in a rental income property present a promising opportunity.
When you diversify your investments across multiple asset categories and multiple assets within each category, you position your portfolio for greater stability when the markets go through periods of extreme shocks. With diversification you can continue to maximize your advantage, no matter what the prevailing market conditions may be.
Spread your risks and avoid putting all your eggs in a single basket. Remember Warren Buffett’s advice: “Rule number one: Never lose money. Rule number two: Never forget rule number one.”