Are you looking for new ways to invest your money but don’t want to put it into stocks or bonds? Then keep reading! Investing isn’t just limited to the stock market; there are a wide variety of other investment methods that can help build a strong financial portfolio. From precious metals such as gold and silver to real estate investments, peer-to-peer lending platforms, commodities trading, and even cryptocurrency, these alternative investments offer investors with more options. In this blog post, William Schantz takes a closer look at what each form of investing involves, how they differ from traditional stocks and bonds, and why you should consider diversifying your investment portfolio by adding one or more of these alternative investments.
William Schantz Lists Investments That Aren’t Stocks or Bonds
According to William Schantz, investing can take many forms, and it’s important to understand the differences between them in order to make informed decisions about how to best manage your finances. Stocks and bonds are two of the more common investments, but there are also other types that may be worth considering. Here is an overview of some popular investments that aren’t stocks or bonds:
1. Exchange-Traded Funds (ETFs): ETFs are collections of securities that track a specific index like the S&P 500 or a certain sector or industry. They offer investors a low-cost way to access a variety of assets at once, and they have become increasingly popular over the past few years. For example, if you wanted exposure to large technology companies, you could invest in the Technology Select Sector SPDR ETF. This fund holds a basket of tech stocks like Apple, Microsoft, and Alphabet (Google) and tracks the performance of the S&P 500 technology sector.
2. Real Estate: Investing in real estate is another popular option for those looking to diversify their portfolio away from stocks and bonds. With real estate, investors can purchase property or land outright, or they may choose to invest through a real estate investment trust (REIT). REITs are companies that own and manage income-producing properties such as shopping malls, office buildings, and apartments. By investing in a REIT, investors receive regular dividend payments from the profits generated by these properties. According to Statista, the global real estate market is estimated to reach $30.4 trillion in 2020, making it one of the largest investments available.
3. Commodities: Investing in commodities like gold, silver, oil, and natural gas can help investors diversify their portfolios and protect against inflation. Commodities are also less correlated with stock and bond movements than other assets, which makes them an attractive option for those looking to reduce risk. Gold has historically been a popular choice for investors due to its long-term stability and ability to preserve wealth during times of economic uncertainty. According to the World Gold Council, investment demand for gold increased by 8% year-over-year in 2019, with total investment demand reaching 1,190 tons.
4. Cryptocurrencies: Cryptocurrencies are digital assets that can be used as a form of payment or investment, says William Schantz. They offer investors the potential for high returns and are generally less affected by market movements than other investments. However, they also come with significant risks due to their unregulated status and volatility in prices. For example, Bitcoin’s price rose from around $1,000 at the beginning of 2017 to nearly $20,000 by December of that year before crashing back down to $3,500 at its lowest point in 2018. Despite these risks, cryptocurrencies continue to attract investors looking for potentially high returns on their investments.
William Schantz’s Concluding Thoughts
No matter which type of investment you choose, it’s important, as per William Schantz, to do your research and understand the risks involved. Investing can be a great way to grow your wealth, but it is also important to remember that there is no guarantee of success. By thoroughly researching each option and familiarizing yourself with the different types of investments available, you will be in a better position to make informed decisions about where to invest your money.