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When it comes to alternative investments, the number of options can seem overwhelming. Scott Tominaga explains that not all investment options are created equal – some offer higher return potential, while others come with less risk.
Real Estate Investment Trusts (REITs)
REITs are a popular choice for investors looking for exposure to the real estate market without having to purchase property directly. These securities typically trade on major exchanges and offer high dividend yields.
Commodities
Investing in commodities can be a solid way to diversify your portfolio and hedge against inflation. Commodities such as oil, gold, and silver have historically performed well during periods of economic turmoil. Additionally, global demand often drives commodity prices, so investing in these assets can help you profit from rising economies worldwide.
Peer-to-Peer Lending
Peer-to-peer lending platforms offer investors the opportunity to loan money to individuals or businesses for interest payments. Peer-to-peer lending also tends to offer higher returns, making them an attractive option for risk-tolerant investors, explains Scott Tominaga.
Hedge Funds
Hedge funds are another popular alternative investment. These investment vehicles use a variety of strategies to generate returns, including short selling, derivatives trading, and long and short equity positions.
Private Equity
Private equity is another form of alternative investment that involves investing in early-stage or unlisted companies. These investments can be illiquid and high risk, but it’s also possible to yield significant returns.
Venture Capital
Venture capital is another type of private equity that focuses on investing in startups or other high-growth companies. While these investments are often riskier than traditional private equity, the returns are generally high.
Collectibles
Scott Tominaga explains that collectibles such as art, wine, and classic cars can be an excellent and meaningful way to invest in something you’re passionate about. While these assets are considered illiquid and difficult to value, the financial and emotional returns make them worth it to some individuals.
Scott Tominaga has years of experience in the hedge fund and financial services industry. Read more of his insights by visiting this website.
