In this two-part series, I investigated three nontraditional investment ideas for 2019. In part one of the series, I introduced peer-to-peer lending, which you can find by clicking here. In the second portion of the blog, I will be introducing equity crowdfunding and gold.
Equity crowdfunding allows an investor to own part of a business without having to deal with all of the headaches that come with owning and operating one.
Startups often offer shares of their company on equity crowdfunding websites and allow smaller investors to privately own pieces of their business.
Equity crowdfunding differs from venture-capitalist investments in that instead of a single or a few financial firms investing in a new business; capital is raised by allowing a large number of small investors to allocate their funds directly to the company through specialized online platforms.
Of course, there are risks involved anytime an investment is made into a company that has no proven track record but if a particular company shows promise and has a good business model, large returns can be made for investors who would otherwise never have an opportunity to invest in new companies & firms not listed on a public stock exchange.
Investors can start investing in equity crowdfunding websites for just a few hundred dollars!
Isn’t gold a traditional asset? In a sense, yes, but its alternative nature shines through when it is used as a hedge against inflation and during bear markets affecting other assets like stocks and bonds.
The price of gold has no correlation with any other asset class and therefore, can not be affected by downturns in their value. Of course, it is good for investors to always hold at least a small portion of gold in their portfolio for its historical value.
The value of gold is very difficult to assess as it does not give off any cash flow like a business or bond does, but it does have a historical value which has shown to stand the test of time- it has continued to rise slowly and steadily since the early 1900s.
Aside from its long-term investment potential, gold should also be used as protection against tough economic times, especially when those times start to bring down the value of other popular asset classes.
What is the current outlook for gold these days?
According to a recent CNBC report, gold looks like it will move higher by the end of this year (2019), and possibly reach $1,400 an ounce.
Investors should always diversify their portfolio among various asset classes while many of these asset classes will comprise of traditional assets with proven and soundtrack records, newer and more alternative investment opportunities should also be considered to protect the value of their portfolio, especially during bad times.
While alternative investments can carry a large amount of risk with them, if an investor chooses them wisely and allocates a small portion of his or her capital into them over time, they could gain high returns that are rarely had by more traditional forms of investing.
About The Author
Jason Bond is a Professional Trader, Entrepreneur, and Founder of the popular swing trading program, Jason Bond Picks. He originally became interested in stock trading after finding success with the help of fellow trader, Jeff Bishop. Together, they launched the well-known trading program, Raging Bull Trading, in 2010, as a way to help other traders find success in the stock market. Today, Jason Bond remains at Raging Bull as a trader and educator, where he also offers his program, Jason Bond Picks.