Do Not Invest In Stocks Or Shares. Not Now.

by Mike on March 14, 2017

Do Not Invest In Stocks Or Shares. Not Now.

Given that we have now seen the stock markets grow consistently for almost a decade since the huge economic meltdown of 2007, this may seem like an odd time to bring this up, but don’t invest in stocks. The reason for this is one of prediction. We go through troughs and peaks, and that means that both are inevitable and, because we are currently at a peak time, a crash is next on the cards.

That is why now is the time to consider alternative ways in which you can invest your money. Whenever there is an economic crash, the first thing to get hit is stocks and shares, and so investors will be running around like headless chickens in their search for more reliable alternatives.

And we’re going to tell you what the best alternatives are:

Debt Is Guaranteed

So few people actually see this as an investment, but paying down your debt is one of the best investments you can ever hope to make. That is because it produces a guaranteed return. Let’s say you have credit card debt and you are paying a 10% rate of interest. Well, by paying this off, you are effectively getting a return on investment that is the equivalent to a 10% return, a figure that most investors can only dream of.

What’s more, that isn’t the only mega-benefit of this investment tactic, because paying your debt off will offer you a tax-free return, which is unheard of the investment world.

As such, the quicker you can pay off your debt the better. Perhaps it could be that you get some grants to pay off student loans, or instead of squandering the excess amount from your next pay-rise you put it toward your mortgage repayment or any other debts you may have accrued.

The more you can invest the better, though. After all, there is a reason it took the first place on our list.

Real Estate Is Tangible

So many investors swear by this route of investment as the only one worth making, and this is because it is a tangible asset, one that can be used with real purpose. Unlike stocks and shares, real estate is a physical commodity that has value in and of itself. What’s more, it is an investment that doesn’t just accrue wealth through appreciation, it can also be used to harness an income, thus providing two huge means of increasing the investors capital in a tax-favourable way.

It is just a matter of playing the market and knowing how to buy under the market value and sell at a price over it. That is something that stocks and shares don’t offer an investor. As such, you have the chance to earn big bucks when the property market booms and to pick up investment opportunities when it slumps. You could even have the chance of creating a rental portfolio that generates its own income while paying off your mortgage and appreciating.

Peer-To-Peer Benefits Everyone

It is still early doors for this alternative investment, but it is only going to continue to disrupt the traditional means of borrowing and lending because it favors both parties. The way it works is simple, you remove the middleman – the banker – from the lending equation, which means you as the investor are able to get higher rates of return and the borrow can enjoy lower rates and fewer fees.

What makes this so attractive is the fact that the borrower gets to enjoy a better deal, making it far more likely they won’t default on their payments. It just makes repayment that much more attainable, and success that much more achievable while ensuring the investor sees a return too.

What’s more, most peer-to-peer lending services allow you to spread your investment out over some loans – sometimes hundreds of different loans – meaning you have a more diversified portfolio that will reduce the chances of you getting hit for six should one or two loans go sour. It is nothing short of genius.

Why Not Get All Arty

Collecting art has to be one of the most entertaining and rewarding ways of investing your money, and that is because you get to enjoy your investment while watching the market to see if it increases. It allows you to get hooked on a hobby that can provide real rewards.

Take Hugh Grant for example. He got drunk at an auction and had his assistant bid on an Andy Warhol painting for him. He bought it for a staggering £2 million. He then enjoyed it for a few years, walking past it every day as it sat on the wall in his living room – or wherever – before he sold it for £13 million.

That is the beauty of art. It can become a passion that produces astronomical rates of return that can’t be found anywhere else, except maybe wine or classic cars. But it is well worth investing in that industry, in history and culture, because it can be incredibly rewarding, while quite tax friendly too.

Metals Can Be Quite Precious

It is one of the more controversial assets to invest in, but a lot of investors swear by gold, and there are few reasons why.

The first is because they can often react very favorably to certain market conditions. For example, when the dollar falls, the price of gold tends to go up, which makes investing in gold quite an attractive proposition, especially in terms of spreading some of the risks.

But that isn’t the only benefit because the other major benefit is the fact that it is tangible – the investor can take possession of it – whether that be in bullion bars or coins. As such, should the world see an economic collapse swallow everyone up like, in 2007, you can then use your gold as a great bartering tool, and use it as leverage to command a better deal? This cannot be achieved with stocks and shares that are almost completely dictated by the market.

Previous post:

Next post: