Even those who think the market offers long-term promise are less enthusiastic about its immediate future.
If pushed to say whether I think we’re on the cusp of a real correction, over 5 to 10 per cent, I’d say that I’m not sure; but the market doesn’t feel great. – Jenny Van Leeuwen Harrington of Gilman Hill Asset Management (Westport, Connecticut, U.S.A).
That said though, most investment advisers have expressed caution about trying and exit the stock market given that it is high now, and then reinvest later when it’s low. But, if history is any indication, many nervous retail investors will not heed their strong advice and instead will cash-in while the market is high and jump out. If you are one of those investors, here are some options to consider, if you’re looking places other than the stock market to invest your money:
Since 2005, a growing number of investors have been investing in alternatives, such as private equity like peer-to-peer lending, real estate investments, and investing in commodities. Over the past decade, many of these alternative investment offerings have established long histories of great returns and stability.
Seek-out the protection of market-neutral products. These investments are designed to earn a strong return whether the market rises or falls. This is one of the advantages when you invest in containers.
“Peer-to-peer” lending websites like Prosper.com and LendingClub.com match up investors with individual borrowers seeking lower interest rates. Peer lending industry experts say investors are getting returns that range from 5 to 12 per cent, and the returns don’t move with the stock market.
Be well aware though that, despite their appeal to savvy, confident investors, the experts recommend that alternative investment holdings should comprise no more than 7 per cent of your total investment portfolio, while money-lending should be limited to a maximum of 10 per cent.