Top Alternative Investment Trends to Watch for in 2024

NEW YORK, January 5, 2024 (Newswire.com) - So, you’re planning to join the scores of people investing in “alternatives,” which basically covers any asset class other than stocks and bonds. They are increasingly popular, particularly during times of economic instability. Opportunities such as those offered here at Yieldstreet, for example, may provide diversification, and potentially improve returns. 

To that end, here are some top alternative investment trends to watch for in 2024.

Private Equity

Private equity is enjoying a moment. Ranging from leveraged buyouts to venture capital, it involves investing in companies that aren’t publicly traded on a stock exchange. Insulated from constant price swings, private equity can mitigate volatility. While a longer-term commitment is often required, and risks are relatively higher, returns can be substantial.

Real Estate

Real estate, including investment trusts (REITs), has always been a solid investment and continues to hold good potential for 2024. It can provide steady passive income, growth over time, leverage, and protection against inflation. A broad variety of investment options are available, depending upon your financial goals and time horizons and you need not be an accredited investor.

Cryptocurrencies

Cryptocurrencies, such as Ethereum and Bitcoin, have continued to gain traction. While they do carry risks, they can also provide substantial returns and portfolio diversification. More brokers than ever are now offering crypto trading, and more merchants globally are accepting crypto as payment. Cryptocurrency also offers transparency, as all transactions occur on the publicly distributed blockchain ledger.

Commodities

In what is a significant shift, many investors are putting capital into commodities such as precious metals, oil, and agricultural products through means such as exchange-traded funds and futures contracts. While they can be subject to price swings, commodities can shield against inflation and diversify your portfolio.

Art

No longer the exclusive province of the very wealthy, art is increasingly accessible as an investment, and it isn’t directly tied to stock market performance. Whether you’re investing through an art fund or with Yieldstreet, art can provide diversification as well as stability during periods of economic uncertainty, and no collateral is required.

Private Credit

Private credit covers a range of investment strategies that span borrower types and capital structures. More investors are adding private credit to their holdings as a prospectively higher-yielding alternative to fixed-income approaches. Relative to other fixed-income segments, private credit can offer a favorable performance.

Peer-to-Peer Lending

This involves lending money to small businesses or individuals online via platforms that match borrowers with lenders. While there are risks, such lending can provide favorable yields, frequently higher than certificates of deposit or traditional banks.

When it comes to alternative investments for 2024, there are a variety of up-trending options that can not only provide consistent secondary income, but can diversify your investment portfolio — which is essential to long-term investing success. Alternative investments may also diminish the impact of market volatility to help you achieve your long-term investment goals, even during economically unstable times.

Source: Yieldstreet