Investments come in a wide variety of asset classes, and investors tend to gravitate toward a particular collection of assets that best suit their needs. Of course, the trick for creating the perfect investing strategy that meets your own individual needs is to understand what those needs are. Investors looking to create stability over the long term hedge the market’s volatility by introducing low correlation assets or others with predictable returns, like gold bullion or bonds. Others look to ride the marketplace wave and take advantage of fast movers like cryptocurrencies, real estate, or individual stocks. To understand common investment opportunities, it’s important to grasp the options out there and the strategies that investors must leverage to take advantage of them.

Government Bonds

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Many first time investors take advantage of the unique stability offered through the purchase of government bonds. Bond rates remain static throughout your ownership of assets; however, when increasing your holdings with a new bond purchase, you are subject to the current market rate – whether that creates a more favorable opportunity or not. Bonds are a great way to enter a newfound life of savings. Bonds can’t be cashed out before their maturity date (although some are eligible for this with a penalty). Still, they offer a guaranteed return that is calculable upon your purchase of the instruments. This way, you know exactly how much you stand to make, without any uncertainty. However, in exchange for this absolute return, you sacrifice the higher growth rates offered by other commodities. Bonds offer some of the lowest returns out there to investors, but they provide this with a guarantee that can’t be found elsewhere.

Precious Metal Bullion

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Gold, silver, and even platinum bullion is a great investment for those looking to lock in long term growth. Precious metals offer investors a tangible asset that can be leveraged as collateral, kept on hand, or stored in a secure facility provided by many dealers that offer metals products in the first place. In particular, the price of gold trends upward at a favorable rate that rivals stocks or other fast-moving investment assets and overtakes bonds quickly as a stable growth object.

 

Precious metals offer a great mixture between liquidity and strength and therefore are a favorite for long and medium-term investors looking for something different from their stock market portfolio. Gold is easily resold, but investors must be careful while compiling a portfolio of metals. Larger units protect their resale value better than ounce coins but obviously, offer reduced liquidity in selling quantities. A mixture of small and large metal bullion varieties offers the greatest combination of value protection and fast liquidation potential to pursue other opportunities.

Real Estate

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Property ownership is another favorite among investors looking to add assets with low correlation to the stock market. While most retail investors get their start in stocks, many find that branching out into the real estate game provides them with better returns on their investments. In fact, real estate can be bought into without actually entering into homeownership yourself. Investment opportunities in this arena range from the REIT index marketplace on the traditional stock market to alternative funds like the Prism Fund offered by Yieldstreet. Many early investors ask, ‘what is Yieldstreet?’ when they first stumble upon the offerings made on this platform. They quickly come to realize the potential returns that can be made through investments in apartment property management and other real estate ventures accessible through Yieldstreet funds.

Classic Cars

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Retail investors that double as car enthusiasts often love buying and selling cars. Utilizing public car auctions to find the best deals on a fixer upper or two is a great way to get into the automobile market. These commodities trade at an alarming rate because people love to drive a car with history. Trading in antique or classic cars takes a bit of know-how, just like the physical property market, but requires far less capital upfront to get into the game. Unlike most roadworthy vehicles that you see while driving, classic cars increase in value each year.

 

Most cars exist as a number among a huge stock of available equivalent models. There are millions of 2020 Toyotas on the road today; however, the number of 1960s Ferraris diminishes every year as the minuscule numbers of these particular vehicles still in existence continues to cease driving or are wrecked in car accidents. The rarer a car is, the more valuable it becomes. Classic cars that are restored to perfection often fetch a healthy return on investment.

The Stock Market

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The stock market is the classic investment vehicle, and millions of us participate in trading billions of dollars’ worth of company shares daily. The stock market exists as the blueprint for trading across the United States and the world, and beyond its own parameters and through to other asset classes. The market remains the perfect learner’s arena for those new to investing. It offers a uniquely balanced space that enjoys a healthy degree of stability while offering just the right infusion of risk so that investors can learn to manage expectations and asset allocation to perfection.

 

Utilizing learning resources like WealthRocket is a great way for new investors to gain traction in the market and take advantage of opportunities to branch out into these other asset classes (see wealthrocket.com for more). Learning and knowledge building remains the cornerstone of success in the stock market and beyond it. The ability to navigate a company’s earnings per share and dividend yield translates perfectly into your identification of viable real estate properties or the time required for a gold bullion purchase to yield a favorable increase in value. If you’re looking for a knowledge boost, start with this brand.

 

The lessons learned in the market are crucial for finding success elsewhere, and this is why investors often take their first steps in stocks and bonds. While you can invest in any way you choose, it’s often the best idea to start off with some easier tactics.