5 investment ideas in market volatility
Sept. 26, 2022 10:00 am EDT
NEW YORK, Sept. 26, 2022 (Newswire.com) –
With US inflation still uncomfortably high, investors are increasingly looking for ideas on how to deal with an influx of volatility in traditional markets. Countless strategies have been employed in the past to avoid losses and even profit from wild price swings, and today online investment platforms like yield road make it easy to use alternative options in the private market while the economy remains uncertain.
If you’re looking to invest in this current environment but aren’t sure where to start, here are five investment ideas to inspire you:
real estate investments
invest real estate is a notoriously popular alternative to the traditional market and the variety of different investment strategies makes it an attractive option in times of increased volatility. While some investors might try to actually buy a property if the price is right, it’s far from the only approach. If you want to start small, you can, for example, buy into a real estate fund or REITthat delivers consistent returns in the form of dividends.
Visual arts are widely viewed as a wise hedge against market fluctuations, as many works are considered timeless and tend to appreciate in value regardless of the state of the economy. In fact, investments in fine arts have collectively outperformed traditional markets for decades. And while this asset class has long been out of reach for most, almost everyone is looking for it invest in art can get started today on a platform like Yieldstreet.
While the conventional wisdom tends to suggest that when volatility increases, investors will flee from risky assets like stocks and cryptocurrencies, there are many successful traders who will tell you exactly the opposite. Sure, actively buying and selling stocks or crypto in a volatile climate isn’t for everyone, but those with nerves of steel willing to track price fluctuations and execute trades in real-time have the potential to earn well-above-average returns.
Peer-to-Peer Lending (P2P)
P2P Lending can be an excellent way to generate residual income as there is almost always someone seeking a personal loan who may not have access to more traditional lines of credit. In addition, P2P lending platforms typically offer relatively high interest rates for monthly payments, and investors can exercise more or less control over how much risk they are willing to take. Importantly, however, P2P lending is largely unsecured, and even the “least risk” option can result in a hefty loss if a borrower defaults on their obligation.
High return savings
Finally, the most conservative approach to investing through volatility is to simply store your capital in a traditional, high-yield savings account. This option is becoming more attractive as the Fed continues to raise interest rates, allowing investors to build their bankroll with confidence and ultimately invest more money when the market turns up.
Source: Yield Street