Interest rates are at or near all-time lows throughout the developed world. These low levels of interest rates reflect the policies of central banks that want to discourage saving money and encourage the borrowing and spending of it. The objective of course is the stimulation of the global economy. In an environment like this, folks that are accustom to earning a fixed amount of income from their savings feel obliged to climb out of their comfort zones and hunt around for better investment yields. To this end, a whole new class of alternative investment ideas has surfaced with promises of recapturing lost interest earnings of bygone years. Below is an outline of some of the more interesting and colorful of these alternative investment approaches.
Paying off Debt and Shunning Fees is Often the Surest Investment
Anyone with a loan balance or credit card debit is wise to consider using available funds to pay down such debts. Credit card debt is a perfect example of this principle. Making early payments on high-interest credit card debt should be regarded as the equal of making a good investment.
Cutting costs on financial services and money transactions represents a foolproof method of bolstering one’s personal balance sheet. Today, banks are charging fees on services that were traditionally provided at no cost. This is a response to a business climate characterized by slumping loan demand. To combat these fees and costs, savvy consumers are shunning commercial bank accounts in favor of free checking and savings accounts offered by credit unions that provide the same level of service as most commercial banks.
Synthetic Real Estate Investing
Synthetic real estate is a method of investing in the real estate market without actually buying any physical assets. The investment is made through the purchase and sale of property derivatives traded on commodity exchanges. One such example includes using Standard & Poor’s (S&P) Case-Shiller Home Price Indices futures contracts. If one were interested in participating in the residential housing market they would buy or sell the residential index. Those interested in profiting by taking on the risks associated with owning commercial real estate can buy or sell the S&P commercial real estate index.
It seems like a new e-commerce company is popping up every weekend, so this will take some homework. Some people think that there’s just no beating Amazon, which is true, but it doesn’t mean that there’s not a space for more e-commerce companies. Some of the things that separate a good e-commerce business model, from a poor one are: the niche market, the shipping rates, the shipping system, the quality of the products and the quantity of the products (*cough* Amazon *cough*).
Binary options are a type of financial instrument that confers upon their owners certain rights without any obligations. Binary options result in only two possible outcomes — a win or a loss where the option holder either earns a fixed monetary amount or nothing at all. The seller of the Binary option assumes the risk of paying off the option holder. Binary options are rather new to the market and this is what makes them so unique and trendy. Buying and selling binary options should be regarded as a high-risk investment strategy that should be avoided by those whose investing objectives mainly include safety and income.
This sounds cliche, but tech start-ups are not a bad route to go. Because there are so many out there, it’s easy to just write-off all of them, but where there’s a lot of risk, there’s also a lot of opportunity for growth. Companies that are focusing an things like cloud storage, data analytics or mobile app development have a high risk/reward persona behind them. So before you go throwing thousands of dollars at your friend’s app development firm, make sure you really do your homework on them. Find out what makes their service/product different, where they see themselves in 1, 2, 5, 10, 20 years down the line, and what other fields they se themselves expanding into.
The global stock market decline of 2008 triggered an era of lost confidence in capital markets and simultaneously fueled a booming market for classic automobiles. To date, the value of classic cars is nearly 40 percent higher than the previous year. This information comes from the Historic Automobile Group Index (HAGI), which tracks the after-market value of fifty very rare and desirable classic cars. Such cars are presently outperforming other tangible investments such as gold, art, collectible wines, and coins.
Bitcoins are a form of digital or software-based (virtual) currency that circulates within an Internet-based economy. Bitcoins can be used to buy goods and services on a large number of websites throughout the world. Bitcoins can also be converted into common currency which makes them desirable. Because the U.S. dollar value of bitcoin is so volatile, a secondary market of trading in and out of them has developed. The rapid growth in the buying and selling of bitcoins has made investing in them one of the trendiest and most futuristic investing activities in this group.
These are just a few ideas of creative places to put your money. The thing with trendy investing opportunities is that they don;t stay trendy for long.