One glance at a stock market graph is enough to confuse anyone. The points, percentages, and fluctuations are impossible to interpret for beginners. And that’s all before you learn the stock market lingo, which is like a foreign language. What are bears, bulls, and pips?
That’s right, the stock market is deliberately confusing, making it very difficult for new investors to get started. But, you don’t have to immerse yourself in that world. The stock exchange is just a small part of your investing options. Today, we’re looking at the best alternative investments in 2016. Where, exactly, will your money work hardest for you next year?
Gold and jewellery
We could put gold and jewellery on this list every single year, and we’d always be proven correct. Gold is the sturdy, sensible investment in your portfolio. It won’t make you rich, but you won’t lose that investment either. Gold and jewellery maintains a strong average price regardless of how the wider market reacts. It has dipped a tiny bit over the last two years, so now is a great time to jump in and make some small gains.
Stamps may seem like a strange investment, but they regularly have a 34% increase over five years. Anything that is unique and has value will be valuable to investors. Stamps are just one example of this. If you have expertise in a niche area like this, think about investing.
You’ll already know that exchange rates fluctuate day-to-day. That’s why the news reporter always ends a segment with “the dollar is down today” or something similar. It’s why you never quite get the same amount of cash when you go to a foreign country. By trading currencies at just the right moment, you can make a profit from these fluctuations. It’s called Forex trading, and you can trade most of the major currency values here.
You might have heard of indices and concluded that they are too complicated. The truth is, they’re the most simple investment you can make. Indices refer to the broad, overall stock market position. It’s a cumulative total of the top companies in each country. The US 500, for example, is an indice. So is the UK’s FTSE 100 and ‘Wall Street’. Indices are typically altered by wider economic trends and news reports. It’s quite easy to predict how the entire market will react to news events. This makes indices one of the more predictable investments.
Art, wine, and cars
We mentioned stamps previously, but it doesn’t end there. Quite simply, you can invest in anything that you have expert knowledge in. If you understand art, wine or cars, you can easily make sensible investments. These are sectors where there is huge value in scarcity. Collectors items will always accumulate value. We also think you should always invest in something you enjoy. If you have a particular passion, look for a way to invest.
As you can see, you don’t have to stick to the stock market to invest. Money grows in many different ways. Where would you start?