T
he current market landscape is more volatile than ever before, making it challenging to rely solely on traditional investment methods like residential real estate or stocks. To achieve stability and long-term growth, diversification is essential.
Traditional asset classes such as bonds, cash, and treasury bills have historically offered dependable returns, but the modern marketplace has become too turbulent to predict their performance. Many experts believe that a classic 60/40 stocks/bonds portfolio will not be able to deliver expected results in the future, making it necessary to explore alternative investments.
Alternative investments are assets that don't conform to traditional formats, but this doesn't necessarily mean they come with greater risk. Technology has opened doors for average investors to access safe and previously inaccessible investment opportunities.
To build wealth in the 21st century, a diversified portfolio is crucial. Here are some next-generation investment trends that can help:
Mineral and royalty interests offer a stable source of income and potential returns from the energy industry. Tokenization technology has made it possible for companies like Mineral Vault to offer security tokens representing fractionalized interest in mineral properties, making this previously inaccessible asset class available to national and international audiences.
Commercial real estate is another high-profile investment vehicle that can be accessed through digital platforms like PropTech company RedSwan. These platforms tokenize large properties, allowing investors to invest at relatively low entry points. This approach supports a digital asset with physical backing, providing a more sustainable trajectory than purely digital assets.
Private equity and venture capital are also being democratized through tokenized platforms, making it possible for those with limited resources to crowdfund angel investments and venture capitalist ventures. Platforms like Zoniqx utilize multiple digital currencies to allow diverse investors to contribute on their terms.
To get started with next-generation alternative investments, consider the following practical tips:
Assess your risk tolerance and compare it to your investment timeline.
Update your financial goals and make sure they align with your current investing strategy.
Evaluate how far your current investments will take you and make a data-backed assessment of what you need to improve.
By staying open-minded, resilient, and adaptable, investors can keep up with the ongoing evolution in next-generation investing. Consider these cutting-edge alternative investments and make an informed decision on how they should factor into your long-term strategy for wealth generation.
