When it comes to investing, a surprisingly large number of people cannot think beyond stocks, bonds, mutual funds and precious metals.
While these investments have yielded high returns over the years, they are also subject to the whims of the market. This is why alternative investments are becoming increasingly popular these days.
Alternative investments are subject to risks, just not stock market risks, so they can provide uncorrelated returns to stocks. They also offer an opportunity to diversify your portfolio and invest in asset classes that can give you excellent returns in the long term.
Here are six investment alternatives not in the stock market that can be a nice addition to your portfolio.
Small-cap winners galoreThe big stock market winners share one common attribute: Near the beginning of the ascent of their shares, the companies offer revolutionary products or services, are market leaders in their respective industries, or both. Some big stock market winners that possessed the attributes outlined above are Netflix (NFLX), which we recommended to investors in October 2002; Intuitive Surgical (ISRG), which we bought and recommended in July 2004; Baidu.com (BIDU), which we bought and recommended in August 2006; and MercadoLibre (MELI), which we recommended to investors in October 2010. Get up-to-date small-cap stock picks from David Frazier, editor of Small-Cap Profit Confidential.
Smarter cryptocurrency investmentsThe stock market crash of 2008 was the catalyst for his journey into alternatives. And interestingly, it was the impetus behind the creation of Bitcoin and the blockchain technology behind it. Keene Little wasn’t ready to risk his money yet but he was very curious, so he began charting Bitcoin’s technical patterns. What finally convinced him to dip a toe into digital currencies was seeing that they followed familiar price patterns that could be analyzed and successfully acted on. Now he shares those insights with subscribers to the Crypto Wealth Protocol.