5 Stock Market Beating Alternative Investments

By | September 18, 2011

Let’s face it: investing in the stock market is not always the best idea. This is particularly true for older individuals who can no longer afford to wait out the “downswings” of the market.

While there is nothing wrong with investing some of your money in the stock market (if it’s at the bottom now, there’s only one way for your investment to go), there is no better time than now to consider alternative investments. By considering these options, you can diversify your portfolio and hopefully earn an even better return than you would get with stocks.

  1. Collectible cars: Did you know that collectible automobiles have outperformed the S&P 500 over the last four years? If you have any interest in collectible cars this may be one of the best ways to invest your money. Not only can you stay involved with a hobby that you enjoy, but you can make a lot of money along the way. However, investing in collectible cars is just like anything else – you need to do your homework to ensure that you make the best possible decision.
  2. Wine: No matter if you are a wine connoisseur or somebody who is simply looking for an alternative investment, this is an option definitely worth considering. Over the past three years, fine wine investing has taken off all over the world. From Australia to the United States and everywhere in between, more people than ever are investing in fine wine. Just like the stock market the fine wine market goes up and down. However, things have been looking up lately as wine, particularly Bordeaux, becomes increasingly desirable as a status symbol in developing economies. Even if you don’t enjoy the taste of wine, if you are interested in earning a better return on your investments you should learn as much as possible about this market. And with wine-based investment funds, you don’t even have to store the wine!
  3. Cash: What say you? Cash is not an investment, right? Maybe not in the traditional sense of the word, but this is definitely something that more and more people are turning to. By taking money out of the stock market and moving it into cash investments, such as a savings account or certificate of deposit, you are opting to “play it safe.” Of course, all is not loss. You may not earn as much as you would when the market is gaining ground, but a few percentage points of interest is better than taking the risk of losing money.
  4. Peer lending: What do you think about lending money to others through programs such as Prosper.com and LendingClub.com among others? In short, this is a great way to earn a high rate of interest on your money. As a lender, you are in position to earn a higher rate of return than you would through more traditional investing methods. While not always the case, you should expect high single digit returns.
  5. Sports memorabilia: Are you a sports fan? Do you have a favorite team or player? Investing in sports memorabilia can be among the most exciting alternative investment options – especially if you focus on a sport, team, or player that you know a thing or two about. But before you rush out and start investing in sports memorabilia, you need to invest with your brain and not your heart. Stick to big name players because the law of supply and demand is always in effect (smaller supply means a higher demand and a better return). Also, you’ll need a storage system to keep your items in top physical condition.

Andy Boyd is co-founder of the Money Choices website, an independent comparison service where he has contributed reviews of many of the top performing high yield savings accounts in the Australian market.

Leave a Reply

Your email address will not be published. Required fields are marked *