Mooers' insights: How should we think about investing in alternatives
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Welcome back to Mooers' insights, where we share knowledge and thoughts.
Last week, Weekly Buzz discussed "How should we think about investing in alternatives?". Let's see what mooers talk about!
Source:Giphy
Owning alternative assets is best suited for investors whose portfolios are already diversified.
@HopeAlways
Investing in alternative assets such as real estate often requires a lot of capital and the investments can be illiquid, so they are not easily bought or sold.
I would treat alternatives the same as I have been told about penny stocks.
"You can allocate 10% of your portfolio to risky investments, but never more than that". A small percentage of your portfolio can welcome speculative investment, but at a certain point you should cash out.
Alternative Investments are one of the best options to diversify exposure and thereby, balance the risk.
@Syuee
Real Estate is one of the best investments and a safer alternative investment option. Investing in real estate for the short-term, you could be taking larger risks and there could be a loss. Long-term investors don’t have to worry nearly so much about timing the property market.
Diversifying through investing in alternatives can reduce a portfolio’s overall risk
@Southern Eagle
Fine art and other collectibles can be used as alternative investment vehicles. But there’s substantial risks to collectible tangible assets since there’s no guarantee the asset will appreciate.
Many alternative investments are less volatile than stocks
@KT88
Examples of passive income streams are Real estate investment trusts (REITs), Dividend stocks and others. Alternative investments can offer opportunities for individual and accredited investors to seek better returns, diversify portfolios, realize tax benefits and lock into predictable and passive cash flows.
When considering investing in alternatives, liquidity may be one of the main concerns.
@Double Rainbow
I like commodities like precious metals and energy resources. These are often traded with derivatives like futures contracts, which further provide investors with ways to hedge against market turmoil or price volatility
The investor should conduct different types of due diligence for each investment in alternatives.
@cola1010
Investors in alternatives should carefully assess the risks associated with each investment they are considering, as well as have a solid understanding of the underlying assets, liquidity, yield and potential risks.
After attending the recent moomoo organized webinar, my investment perspective has widened.
@ZnWC
First, it depends on the amount of money you can fork out for investment and second, your risk appetite. I plan to diversify my investment based on risk level, region and sector.
In order to navigate today's treacherous markets, many everyday investors participate in alternatives investments.
@HuatLady
The benefits of alternative investments are to diversify our portfolios, to minimize overall risks as well as the potential for enhanced returns due to a broader range of investment approaches.
Other alternative investments worth reckoning are the luxury goods sector, as in fine arts, vintage watches, wines and coins.
@HuatEver
It is certainly not easy to garner prompt rewards for those luxury collections, but the potential for sustainable income is alluringly attractive.
Thanks for sharing in-depth ideas! Hope these ideas will help you learn more about investment and better navigate the market!
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Young broccoli : thanks for sharing
Giovanni Ayala : RealEstate is what's booming right now
lastnite24 : next week's topic:
the world had changed drastically from March of 2020 until now, 3 short years.
what stocks do you think will be hot in 5 years from now? 10 years from now? and 15 years from now?
lastnite24 lastnite24 : and by "stocks" I mean sectors, product types, or concepts