Alternative investment options

Investments can be a great way to make your money grow. Imagine just clicking a button on a computer or calling a broker and finding yourself a much, much richer person. Doesn't it seem so simple? When you invest don't you just put money in stocks and watch them grow? It seems that easy but it never is. The stock market is so volatile that you can never predict what it is going to do. One day it is up and the next it is down. There are market analysts that can give good predictions of what the market is going to do, but they can often be wrong as much as they are right. Don't be fooled by their nice suits and pleasant demeanor. The stock market is always risky business. And while it is true that bonds and mutual funds can be a bit more stable than stocks, it is hardly a given that they will remain constant.

Traditional investments are usually thought of as stocks, bonds, and mutual funds. Anything that falls outside of these types of investments is called an alternative investment. Most of us think of stocks, bonds, and mutual funds when we think of investments, which is too bad. There are lots and lots of different types of investments, and many of them with tremendous profit potential. Here is a list of some of the common alternative investments that both individuals and businesses make:

1. Commodities. There are lots of different commodities that can be bought or traded as an investment. You could, for example, invest in a large quantity of diamonds or gold. If you have the patience and the wealth you could wait and watch as the price changes on this commodity. When the price goes up you can sell the stuff and make quite a nice bit of profit. The only thing to be very careful of when you invest in commodities is that you get good stuff. A bad diamond is worth almost nothing, or much less than you paid for it.
2. Real estate. Real estate is a huge and often succesful alternative investment. Like many alternative investments it takes time and patience to develop, but the pay off can be great. There are many different types of real estate investment. For example, you could invest in rental properties, in commercial business space, in international real estate, and even in foreclosures.
3. Loans. Another way to invest is to offer loans, either to businesses or to individuals. This can be a risky business because you never know who will be able to pay you back. Only invest in people or companies that you know can pay you back. There are several different loans you can make, such as mortgages, cash loans, and equipment loans.

As you can see, there are lots of different types of investments besides stocks, bonds, and mutual funds. If you would like to do some alternative investing, be creative. There are lots of things, like parking spaces or franchise restaurants and hotels that could be a good option for investing. Never limit yourself to just stocks and bonds. One of the keys to investing succesfully is diversifying your investments. If you put all your eggs in one basket and loose the basket you will not have any eggs. Look for alternative investments that are safe and well researched. Never make an investment impulsively. If you have not invested before you should be very cautious getting involved in alternative investments. Watch out for con artists and scams. A good alternative investment could make you millions.

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