If there’s one thing a recession will remind any investor of, it’s the volatility of the traditional stock market. After a year of loss in 2022, it’s unclear whether or not we’ll see any real recovery in 2023.
Unsurprisingly, many people are looking for alternative investments to offer some protection against the stock market. Are there other ways to invest your money that may pay off more in the long run?
Today, we’re going to share interesting investment ideas that will diversify your portfolio in unique and exciting ways.
Read on for seven types of investments to rejuvenate your investing strategy.
1. Real Estate
We know what you’re thinking: you’ve already heard this one before. However, there’s a reason why real estate is one of the best choices for a diverse portfolio. Even with minimal upkeep, property almost always appreciates with time.
If you don’t have the cash flow to purchase a house or commercial property, there are other options. For example, purchasing land in up-and-coming areas is a great way to make money, as developers are always on the hunt for a clean slate. You can also participate in group or online real estate investing that allows you to pay for a portion of a property and reap a smaller reward.
2. Rare Memorabilia
If you love the art of the hunt, you may want to consider investing in rare memorabilia. If there’s significant historical or fan-based interest in a niche, you can often make money selling rare, minted items.
You’ll either need to become an expert or partner with an expert to insure that you’re purchasing authentic items. You will also need to practice safe storage to protect any memorabilia you add to your collection. You’ll also need to prepare for the waxing and waning of interest in your collection, something we see often in niches like coin collecting or military memorabilia.
3. Fine Art
Fine art presents another investment opportunity that is perfect for anyone who enjoys more active involvement in building their portfolio. While fine art can seem like a rich person’s game, you don’t have to have millions to get started.
One option is to keep an eye on up-and-comers. Buy a few pieces from new artists that are generating buzz but can’t yet charge a fortune for their work. While this approach is a gamble, you could be sitting on a fortune within a few decades.
4. Digital Art
Like rare memorabilia, fine art requires a commitment to proper storage. If you don’t have the space or can’t create gallery-like conditions in your home, it’s time to consider a digital alternative.
NFTs have made waves in the crypto investment community in the past few years. Artist-produced NFTs, in particular, have the capacity to appreciate, while some collectable NFTs are prone to dropping in value as the market saturates. Find out where to purchase NFT’s and start building your online investment portfolio.
5. Small Businesses
We know the success stories of the people who managed to invest in companies like Google and Apple when they were in their early stages. While it’s not always easy to predict which companies could make you a billionaire, many savvy investors can sense when a business idea is a good one. Equity crowdfunding and peer-to-peer lending make it easy to take a chance on new and small businesses.
How does it work? Depending on the platform you decide to use, you may be able to peruse the business proposals offered up by entrepreneurs in your region, around the nation, or around the world. When you find a proposal that excites you or that you believe will succeed, chip in to cover start-up costs in exchange for stock.
6. Alternative Assets
What makes the stock market so precarious? Financial setbacks like inflation severely impact the value of the dollar. Almost overnight, investors can discover that their dollar-based assets have dropped in value, which is especially concerning for older investors and retirees.
This is where alternatives to the dollar can come in handy. We’re talking about gold, silver, and other fine metals as well as fine jewellery and gemstones. These alternative assets don’t depreciate every time the value of the dollar plummets.
Keep in mind that some of these alternative assets are taxed at a higher rate than other investments. The same is true of fine art and even certain types of memorabilia. Talk to a tax expert before converting tons of cash to alternative options.
7. Fine Wine
Here’s one for our most sophisticated investors. Investing in fine wine can yield an impressive return once that wine is considered aged or vintage. Online indexes make it easy to track the value of fine wine so that you know when to wait and when to sell.
Once again, there are trade-offs. In order to appreciate in value, wine must be kept in very specific conditions, and most cellars have a custom-built wine cellar for that reason. Plus, you will have to show some restraint and leave those bottles corked and sealed if you want to make any money off of them in the future.
Which Investing Ideas Will You Try?
It’s easy to understand why so many people are looking for new investing ideas to supplement or replace traditional stocks. In such a tumultuous economy, it can feel like the stock market will never right itself again. While these ups and downs are common, it’s still important to try new investing strategies while you can.
Having the right investment portfolio can unlock a whole new lifestyle. If you’re looking for more ways to reinvent yourself or reinvigorate your life, take a look at our lifestyle section. We offer tips, tricks, trends, and more.