As inflation in the U.S. continues to hover around a 40-year high, many investors are looking for alternative strategies to mitigate the ongoing volatility in the traditional stock market. This is, of course, an appropriate reaction; rising prices have resulted in the Federal Reserve aggressively hiking interest rates to cool demand, and many fear that this could lead the country into a prolonged recession. Fortunately, alternative investment options have become much more diverse and accessible in recent years, with online platforms like Yieldstreet making it incredibly easy for investors to shift course and add some much-needed diversification to their portfolios.
With plenty of strategies to choose from, investors simply need to decide which alternative investment is the best choice to complement their individual investing style and risk appetite.
Here are a few options to consider:
P2P Lending – Peer-to-Peer loans, or P2P lending, has taken off considerably in recent years and is currently one of the most popular and accessible alternative investment strategies in the U.S. Put simply, online lending platforms like Upstart, Prosper, and countless others make it easy to provide personal loans at sizable interest rates, and ultimately to earn passive income as borrowers make monthly payments. While P2P loans are typically unsecured and relatively high-risk, rising inflation could present a unique opportunity for lenders in the space, as more and more individuals may begin to seek out personal loans as a way to cope with prices.
Real Estate – Real estate has long been considered a reliable alternative to the traditional stock market and can be a great choice for those with a long-term mindset. But real estate investing has also become so much more than simply buying a property in hopes that it will rise in value; online platforms have increased the accessibility of more passive real estate investments such as growth and income-focused real estate investment trusts (REITs), or even crowdfunded investments in rental properties. Additionally, those who don’t mind house guests might consider renting out a room in their own home, as the extra flow of cash can go a long way toward easing the sting of heightened inflation.
Crypto – During times of economic turmoil, not all investors like to play it safe, and in fact many view an ongoing downturn as an opportunity to buy into riskier assets at a discounted price. This is perhaps why many individual and institutional investors continue to take an interest in the burgeoning crypto space. Due to the market still being in its early adoption phase, many digital assets still have the potential to rise significantly in value, particularly once inflation cools and investor sentiment begins to turn around. Of course, not all crypto assets will survive the downturn, and rather than trying to choose a random winner, investors can always gain exposure to crypto through diversified, professionally managed portfolios like Yieldstreet’s IRA-eligible Enhanced Crypto Fund.
