No one says the only place your investment dollars can reside is in
the S & P or mutual funds. Sticking only to these traditional
investments may minimize risk, but investing in alternatives can provide
steady returns for investors,
if you do your research. Many alternative investments can act as a
hedge, produce good yields and provide risk avoidance at the same time,
so do not be quick to rule them out. Just be certain to minimize risks
by doing thorough research, and by exercising caution. Investors get in
trouble when they act on some hot tip, only to find out they are the
bottom feeder on the information and end up placing far too much in a
high-risk game stacked against them. Many an investor has placed all
their investment eggs in one basket, only to find out their returns ever
"hatched." That hot tip turned out to be nothing more than high-hopes
speculation without thought; investment without research or an eye for
risk.
Some alternative investments such as international currency, shipping container investments,
and classic pieces of art, international real estate and fracking
operations, may all offer a hedge provided they are all thoroughly
researched and tracked closely. That is not to say that these particular
investment vehicles are THE ones to seek, I use these as an example for
reference. There are literally hundreds of various alternative
investment vehicles from which to choose, each with their own risk factors to consider.
Remember,
markets move regularly, often swiftly when we least expect it, so
minding your investments, or having a trusted advisor at your shoulder
guiding and care-taking your nest egg is sound advice. Even the most
savvy market masters make errors in judgment and don’t always hit the
proverbial bull’s eye when it comes to investing, so use caution.
Alternatively speaking however, there are a great deal
of alternative, non-traditional investments that can certainly minimize
risk and have proven they are a good investment.
Investing
in alternatives will certainly put a bit of spice into your portfolio,
and close management and oversight can allow for some lively upswings in
revenues. Just remember the market ticks both up and down.
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