With inflation in the U.S. still uncomfortably high, investors are increasingly in search of ideas for navigating an influx of volatility in the traditional markets. In the past, myriad strategies have been deployed in attempt to avoid losses and even capitalize on wild price swings, and today online investing platforms like Yieldstreet make it easy to take advantage of alternative options in the private market while the economy remains uncertain.
If you’re looking to invest in this current environment, but aren’t quite sure where to start, here are five investment ideas to spark your inspiration:
Real Estate Investing
Real estate investing is a famously popular alternative to the traditional market, and the diversity of different investment strategies makes it an attractive option during heightened volatility. While some investors might seek to actually purchase a property if the price is right, this is far from the only approach. For example, those looking to start smaller can buy into a real estate investment trust, or REIT, which delivers consistent returns in the form of dividends.
Fine Art
Fine art is widely considered to be a wise hedge against market volatility, as many works are thought to be timeless and tend to appreciate value regardless of the state of the economy. In fact, investments in fine art have collectively outperformed traditional markets for decades. And while this asset class has long been out of reach to most, almost anyone looking to invest in art can get started today on a platform like Yieldstreet.
Active Trading
While conventional wisdom tends to suggest that investors step back from high-risk assets like stocks and cryptocurrencies during heightened volatility, there are plenty of successful traders who will tell you the exact opposite. To be sure, actively buying and selling stocks or crypto in a volatile climate isn’t for everyone, but those with nerves of steel who are willing to track price swings and execute trades in real-time have the potential to secure significantly outsized returns.
Peer-to-Peer Lending (P2P)
P2P lending can be an excellent way to earn passive income, as there will almost always be someone seeking a personal loan who might not have access to more traditional lines of credit. Moreover, P2P lending platforms tend to offer relatively high-interest rates on monthly payments, and investors can more or less exercise control over how much risk they’re willing to take. Importantly, however, P2P loans are largely unsecured, and even the “lowest-risk” option can result in a hefty loss if a borrower can no longer satisfy their obligation.
High-Yield Savings
Finally, the most conservative approach to investing through volatility is to simply store your capital in a traditional high-yield savings account. This option is becoming more and more attractive as the Fed continues to hike interest rates, allowing investors to quietly grow their balance, and ultimately end up with more money to invest when the market turns around to the upside.
