With the Dow industrials on the brink of the 20,000 milestone and a new presidential administration headed into office, savvy investors should take this time to take the plunge into some alternative investments.
The Merkle.com recently offered a fab four of such ideas. However, “none of these options will guarantee a profit, and people should always do their own research before investing,” the report advised,
Bitcoin
“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,” the report said.
But the virtual currency has had its problems.
Bitcoin has rallied since early 2015 as Chinese buyers, who make up the majority of trading, turned to alternative assets to hedge against the weakening yuan and take cash out of the nation, Bloomberg reported. But with officials tightening capital controls, there’s increased speculation that the digital asset will be the next target -- even though the total value of bitcoins of around $16 billion is minuscule compared with most mainstream asset classes in the nation.
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,” it said.
Gold
“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,” the report said.
Newsmax Finance Insider Axel Merk recently pointed out that gold is the best alternative investment.
"Gold doesn't pay interest, and it costs investors to hold it, yet it might do well when the tide turns," Merk wrote. "Take shorting stocks. Shorting stocks is not suitable for many investors, not least of which because it can be expensive: you constantly have to pay the dividend yield rather than receive it," he wrote.
"Gold is one of the less expensive ways to have a longer-term exposure to what is in the class of "negative" carry. Shorting stocks may be a more expensive way."
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,” it said.
To be sure,Trump’s unexpected victory in the November U.S. presidential election could prove a pivotal moment for the U.S. housing market, according to economist and Nobel laureate Robert Shiller.
“I think we’re at a turning point. The numbers that we’re reporting today are October, before the Trump election, and everything looks different now,” he told Bloomberg Television’s Alix Steel and David Westin. “There might be a Trump boom coming.”
(Newsmax wire services contributed to this report).
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