5 Alternative Investments You Never Knew Existed

TL;DR

In 2022, with stock market returns expected to be low, adding alternative investments to your portfolio can help increase returns and lower risks.

Transcript

the party may be over on an historic two-year bull market in stocks with wall street analysts expecting returns of just four and a half percent in 2022 but stocks aren't the only game in town and you can still make money on your investments if you know where to look in this video i'll show you why every investor needs money and alternative investme... Read More

Key Insights

• 🪜 Adding alternative investments to a portfolio can provide diversification and potentially increase returns.
• 💐 Alternative investments have different characteristics and can help lower overall portfolio risk.
• ♿ Platforms like Vinovest make it easier for non-accredited investors to access alternative investments.
• 🥰 Carbon credits, wine, art, commodities, and real estate are examples of alternative investments with potential for solid returns.
• 🦔 Alternative investments can provide additional benefits beyond financial gains, such as cultural enjoyment or hedging against inflation.

Questions & Answers

Q: What are alternative investments and why should investors consider them?

Alternative investments are investments outside of normal stocks and bonds. Adding them to your portfolio can lower volatility and increase returns.

Q: How can alternative investments help diversify a portfolio?

Alternative investments have different characteristics from stocks and bonds, which can help lower overall portfolio risk.

Q: What are some examples of alternative investments?

Examples include wine, carbon credits, art, commodities, and real estate.

Q: How can investors access alternative investments if they are not accredited investors?

Platforms like Vinovest and Seed Invest provide access to alternative investments and lower the minimum investment requirement.

Q: How do carbon credits work as an alternative investment?

Carbon credits are quotas that companies can trade. The price of these credits can increase as the government reduces the amount of credits given, making them a potentially profitable investment.

Q: What are the advantages and disadvantages of investing in wine?

Wine investing has a history of strong returns but comes with higher costs and the need for proper storage and insurance.

Q: How can investing in real estate serve as an alternative investment?

Real estate provides diversification and serves as a hedge against inflation. It offers various investment options, ranging from renting properties to investing in real estate investment trusts (REITs).

Q: What factors should investors consider when choosing alternative investments?

Investors should consider the return history, correlation with stocks, costs, and enjoyment of the investment when evaluating alternative investments.

Summary & Key Takeaways

• Adding alternative investments (such as wine, carbon credits, art, commodities, and real estate) to your portfolio can lower volatility and increase returns.

• Including alternative investments as 20% of your portfolio can help diversify and mitigate risk.

• Alternative investments can provide higher returns with lower risk compared to traditional stocks and bonds.