Move Over, Wall Street

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“Presidential cycles can create uncertainty, but it’s critical to remember that markets react to policies, not personalities.” - Tony Robins

Move Over, Wall Street

Looking for ways to diversify your portfolio beyond traditional stocks and bonds?

While some are whacky, alternative investments offer unique opportunities that have yielded respectable returns.

Here is a list of five popular alternative investments to give you an idea of different places to deploy your cash.

1) Cryptocurrency

You know we had to get this one out of the way as at the time of writing this Bitcoin is at $90,000 and is up 100% this year. Insane.

In the last 5 years or so crypto has become increasingly popular. Out of all the “assets” in the world of crypto, Bitcoin feels like it is the most promising. With a maximum supply of 21 million, the argument is that Bitcoin will end up being the best store of value for your money. I do own a small amount (less than 5% of my assets) but personally stay away from any “alt” coins and NFTs.

Performance aside, Bitcoin still has a lot to prove when it comes to regulatory standards and normal use. The process of purchasing, setting up a wallet, and understanding the currency is a big ask for most people (for example, my dad can barely get our TV to cable from YouTube).

And not to mention…we don’t even know who created Bitcoin.

If you think your risk tolerance can handle it, I’d recommend reading “The Bitcoin Standard” to learn more and gauge your interest.

2) Precious Metals

Gold, silver, and platinum. Unlike crypto, rare Earth metals have been around for thousands of years and will be around long after we are gone.

Throughout history these rare metals have held many different value cases, even today. Precious metals are good at maintaining long-term value, but lack the growth potential of other high-risk assets.

If you are an investor seeking stability, especially as a hedge against inflation, precious metals might be worth checking out.

(and it is cool to own silver and gold since you can actually buy it physically)

Speaking of gold, here is a word from this weeks sponsor Four Nines Gold. I’m not an investor (yet), but did enjoy checking out the investor presentation on their website.

3) Collectibles

Coming in at #3 is a very broad category that you can have some fun with.

There are high value collectibles in almost every niche. For example art, wine, classic cars, guns, sneakers, and sports memorabilia to name a few.

The draw back to collectible items is they can often be hard to sell. Though if you are looking for somewhere to park cash for a long time, and have some fun along the way, investing into collectibles could be worth looking into.

Here is a cool post covering a examples of sports collectibles that have sold for hundreds of thousands and in some case, millions (Like MJs sneakers).

4) Real Estate

You are probably thinking “DUH Cade” seeing real estate on this list, but hear me out.

There are a ton of ways to invest in real estate. Single family rent homes, multi unit apartments, commercial spaces, leasing land, self storage facilities, boat and rv storage, campgrounds, trailer parks, and many more.

They aren’t making more of it, and therefore land is valuable both from an appreciation and potentially cashflow standpoint.

The only negative here is real estate typically requires higher amounts of capital. If you want to skip owning physical real estate, check out REITs. These let you invest into real estate investment trusts just like you would a traditional stock.

5) Private Equity and Venture Capital

Depending on your net worth private equity and venture capital might be a foreign world. Initial investments in these funds typically range from $25,000 into the millions of dollars. Personally, I have zero experience in this area but have heard enough to keep it on my radar to try out sometime in the future.

Pros here are high potential for returns. Cons are it requires a lot of money and patience as you are betting on businesses.

Honorable mention here could be investing into your own side hustle or business. In this post last week it was one of the top answers:

Conclusion

The stock market is great and is the most popular way to invest. A little bit of diversification though is never a bad idea, and can sometimes be fun with alternative assets.

Hopefully this short piece gave you a few ideas on different places to park your money.

Stocks aren’t the only things that go up in value, remember that. ~ Cade

Chump Change Picks

Coffee Will Make You Live Longer - Cool post I stumbled across showing the health results of those who drink 3 cups of coffee today. The good ole cup of joe has many benefits.

Trump Wins, What’s Next - In depth video by Joseph Carlson breaking down the upcoming Trump presidency and how his policies might impact your investments.

When Did This Bull Market Start - Blog post by Nick discussing the catalyst for this historic bull market.

Best Memes

I’ll take the guy on the bottom every time.

PLTR’s valuation is crazy and it just hit $60 a share (dare we say…The Intelligent Investor might be overrated).

Nothing in this email is intended to serve as financial advice. Do your own research. Thanks for reading, if you have any questions, comments, suggestions, etc. about the email don’t hesitate to send me a reply.