The stock market has been a rocky ride over the last few years. Record highs have quickly dissolved into plunging markets and record lows in some sectors. Fortunately, there are alternative investments outside of the market. Some of these have previously only been available to high net-worth individuals and institutions but are not available to common retail investors. While this is not financial advice, here are a few to research.

Pre-IPO Investing

If you have ever invested in an IPO that performed exceptionally well, you may have wondered what would have happened if you could have invested even earlier. In some cases, you can. Many companies sell pre-IPO shares before going public with their IPO. You can join early-stage or angel investors.

These shares are usually discounted compared to the IPO, which gives you instant returns once the IPO hits the market. Your discounted price can still provide a decent return even if the stock does not perform. 

Cryptocurrency

One of the most popular alternative investments currently on the market is cryptocurrency. While this investment is a hotly debated topic among family and friends, it is worth consideration. Some popular cryptocurrencies, such as Bitcoin and Dogecoin, have gained credibility and acceptance, but there are many unknown currencies that the market is still out on.

Cryptocurrency has numerous advantages. Due to many currencies coming to the market at meager prices, investors who invest at the right time can earn potentially lucrative returns. Also, you can enter with minimal investments due to the very low prices. 

Because of the decentralization and supply caps of cryptocurrencies, the government or banks do not manipulate them as they do other currencies. You have total control over buying, selling, or receiving these currencies. 

NFTs

One of the most recent discussions in the alternative market may be around NFTs or non-fungible tokens. NFTs are not actually an asset class themselves. They utilize blockchain technology to signify ownership of the underlying asset or digital files. Some of these files can include:

• Art
• Videos
• Collectibles
• Real Estate
• Property Rights

NFTs are unique cryptographic tokens that you or others cannot replicate. Existing on a blockchain, NFTs tokenize real-world tangible assets making buying, trading, or selling them more efficient while securing them from fraud. Because of the conversion of the physical asset to a digital one, intermediaries are removed, streamlining the processes. 

Alternative investments can help you diversify your portfolio. These investments are not for everyone, but your investment professional can assist you with more information on which one would benefit you. For more information on portfolio valuations, contact a professional near you