If you want to make a profit off the stock market, it’s important to diversify your portfolio. Cash alternatives are a great way to make more money without having to put all your money into stocks. Peer-to-peer lending, Farmland, and Cryptocurrency are all viable investments that can bring you passive income.
It’s hard to imagine a year with more potential for growth for the peer-to-peer lending sector. Not only will new entrants emerge, but existing platforms will continue to scale along with regulations. New entrants such as Lendwise, an online lender that has launched an IFISA product, are likely to drive growth in the P2P sector. Besides, the IFISA format will provide investors with flexibility to diversify their portfolios to suit their risk profile.
Peer-to-peer lending has seen a tremendous rise in popularity in recent years. Its unique features include streamlined underwriting procedures and flexible credit requirements, making it a good option for people who don’t qualify for traditional lending but need money quickly. Despite its recent rise in popularity, there are still a number of risks associated with peer-to-peer lending.
If you’re interested in investing in farmland, you’ve come to the right place. Agricultural land is a unique asset class that offers low risk and long-term returns. However, it’s important to know how to invest in this asset type. It is important to do your due diligence and find an operator who can help you manage the property. There are many ways to invest in farmland, including through crowdfunding platforms and REITs.
One of the most important factors for investing in farmland is its low volatility. In fact, farmland hasn’t experienced a decline since the 1990s, and it’s about 1/3 as volatile as the S&P 500. For long-term investors, this is an important factor, as high volatility is not desirable. Adding farmland to your portfolio will increase your diversification, a key factor in building wealth. In addition, it will help reduce the volatility of your portfolio.
Cryptocurrency is on the rise, with more institutional investors taking a closer look at the technology. Cryptocurrencies such as Bitcoin and Ethereum are now being incorporated into portfolios by asset managers. As a result, many are seeing substantial returns. More importantly, they’re seeing an increased appetite from clients for diversified portfolios that include crypto. This article looks at some of the key trends and factors influencing the future of crypto.
Cryptocurrency is a useful store of value and can be an excellent addition to any portfolio. It’s also a convenient way to send and receive money. Cryptocurrencies are much easier to store, transfer, and trade than traditional assets, such as gold.
Farmland as a passive income investment
While farmland is an extremely lucrative investment that is gaining in popularity, it is also an extremely risky one. Unlike investing in stocks, selling a farm takes weeks instead of seconds. That means that you should consider farmland as a passive income investment in 2022 only if you are prepared to keep the investment for a long period of time.
Inflationary periods are also favorable for farmers, as they are able to reap more profits. For example, during the Nixon administration, hyperinflation started in the US, which caused food prices to rise. The following year, the US experienced its worst stock market crash, which led to widespread unemployment. Nonetheless, the farmland sector managed to weather several economic crises, including the stock market crash and the Great Recession.
Diversification is the key to long-term investment success. Gold is a favorite among investors due to its perceived safe-haven properties. The asset is down only 2% so far in 2022. But, a rising gold price would be a boon for investors seeking safe-haven investments.
Gold has historically risen in value and has been considered an alternative currency for centuries. Although it does not pay dividends or interest, its low correlation with traditional assets means that it holds its value in times of turmoil in the market. Gold bullion and coins do not pay interest or passive income, but they are tangible assets that can be bought and sold.
Platinum Investments recently executed the largest acquisition and divestiture in the company’s history. It acquired Emerson Network Power for $4B and sold BWAY to Stone Canyon Industries for $2.4B. Its Fund IV and Small Cap Fund both closed with capital commitments of more than $6B each, while its Fund V closed with a total of $10B. The company has a diversified portfolio of assets, including a $7.2B investment in Ingram Micro.
Platinum Equity Holdings has been in business since 1995 and currently manages over $36 billion of assets. The company has teams around the world and a diverse portfolio of operating companies. It employs over 200,000 people globally and generates over $89 billion in revenue.
Alternative assets have had a strong year in 2019. Flows to these investments topped $29.3 billion, more than double the previous year’s record. This comes at a time when investors are concerned about inflation and are wary of conventional equity and fixed income markets. These alternatives offer investors the opportunity to diversify their portfolios and enjoy long-term gains.
While it’s easy to talk about diversification, it can be easy to overlook its value in practice. As long as traditional fixed income offers little yield, an advisor should seek to rebalance portfolios by using differentiated return streams. Traditionally-used hedging strategies include commodities and real estate. But, if investors want a higher yield, they should look to alternative fixed income options.