Tired of investing in tired, old stocks and bonds? If your style of investing calls for high returns to reward a certain amount of risk, the following five alternative investments may be what you are looking for.
1. There is No Business Like Show Business
Broadway musicals and plays such as The Lion King and Bronx Bombers can yield a pretty penny for early bird investors. When a musical or a play turns out to be a hit, investors have great potential to cash in as the show gains popularity and moves beyond Broadway to go on tour.
2. Angel Investments
The red-hot tech industry that gave birth to Wall Street darlings such as Facebook is now within reach of the average investor. Angel investors used to be high net-worth individuals who could comfortably invest more than $50,000 and get a considerable return on investment (ROI) down the line. These days, companies such as MicroVentures provide crowd-funding platforms that allow investing just a few hundred dollars on promising companies.
3. Peer-to-Peer (P2P) Lending
The United States economy is highly dependent on credit and lending activities. Until the arrival of P2P lending, the only participants in the lending industry were financial institutions and wealthy individuals who could fund private loans. P2P lending websites provide a platform for average investors to shop around for prospective borrowers whose credit scores and debt-to-income ratios make them very attractive to lenders. With P2P lending, funding and loan repayments are handled by the platform provider: lenders pool their money and watch their interest payments come in.
4. The Iraqi Dinar
The global foreign currency exchange market (forex) has become a mainstream financial trading platform, but trading in certain currencies such as the Iraqi dinar is an activity that can be considered an alternative investment. Not all forex brokers allow traders to buy dinar, but the U.S. dollar and Iraqi dinar currency pair is quickly gaining popularity. Investors are strongly urged to closely follow dinar news and financial updates from Iraq for the purpose of staying informed about their investment.
5. Hard Money Lending
After the bursting of the American housing bubble, mortgage lending in the U.S. has become very strict. For this reason, hard money loans are becoming attractive to borrowers and investors. These loans, which are secured by real estate, have a foreclosure rate on par with the current national rate. In many cases, the borrowers are real estate investors.
Should you become interested in any of the investments above, be sure to perform due diligence and consider all risks associated with investing your hard-earned money therein.