"The one who follows the crowd will usually go no further than the crowd."
This famous quote has been attributed to Albert Einstein, Eda LeShan, Oscar Wilde and several other intelligent people who spent a lot of time taking their own paths.
When it comes to investing, who said it is not nearly as important as what it means: Non-correlated alternative investments can crash-proof your portfolio.
Too many investors have memories that are entirely too short. This causes them to cling to the stock market, even though it's taken them on a wild ride in the past – and is sure to do it again in the future.
Stock market stress isn't anything new. StockTrader.com wrote about it back in 2007, advising investors experiencing stock market-related stress to "get enough sleep," "eat healthy" and "stay calm."
All good advice, but probably not enough to keep your blood pressure from rising when the market starts crashing.
A better strategy is to break away from the crowd and crash-proof your portfolio by investing in non-correlated alternative investments.
Non-correlated investments are those that don't depend on domestic stocks to increase in value. Whether the stock market is up, down, flat or plummeting has absolutely no effect on their performance.
They are outside of the stock market, where the crowds aren't. They aren't speculative in nature. They don't involve using sentences such as "risky with fair returns" or "safe with weak returns." They deliver stable returns – year in, year out.
And they can take your finances to places most Americans only hope to reach.
Healthy Returns Without the Wild Ride
Most people don't know what the term "non-correlated investments" means, much less take advantage of them. They're too busy following the crowd, putting their hard-earned money in the stock market – and then holding on for dear life through the ups and downs.
That's no way to live.
It's much, much less stressful to take a ride on the reliable side by investing in non-correlated assets, which typically generate healthy single-digit to low double-digit returns:
- Life settlements deliver exceptional growth with low levels of risk. You can plummet-proof your portfolio by purchasing life insurance policies that are unwanted, unneeded or unaffordable for elderly policyholders.
- Commercial bridge loans provide immediate, steady and substantial cash flow. You essentially become a bank, providing temporary financing for relatively short periods of time to other investors or business owners in need of temporary financing.
Return rates are typically between 7 and 14 percent (depending on whether or not you are accredited). Real estate investors who have demonstrated an ability to pay for the loans are often extremely interested in this type of financing.
- Direct real estate investments keep the cash flowing. Sure, becoming a landlord can be time-intensive, but it's also a great way to protect your portfolio against the ups and downs of the stock market.
Not only will you be generating cash flow through monthly rent, but you will also be building equity in the building you own. That's a double win for your portfolio.
- Fractional real estate investing is a great way for accredited investors to build wealth through real estate – without all the risk. Essentially, you become a private lender for commercial projects (e.g. cash-flowing apartment buildings).
These are just some of the ways you can use non-correlated investments to crash-proof your portfolio and take your finances to great heights – even when the stock market falls.
If you're ready to break away from the crowd, connect with The McGriff Alliance today to learn more.