Alternative Wealth Management Markets: The Stuff They Don’t Tell You

Conventional moneymaking activities work for many people. These include things like 401(k) investments, stocks, bonds, treasuries, commodities, savings accounts, fixed-income bearing investments, and the like. Equities markets have proven to be viable investment vehicles for generating long-term profits. Wall Street bourses, including the Dow Jones, NASDAQ, S&P 500, Russell 2000 etc., are at all-time highs, and 1-year returns in the region of 20% + are commonplace. As attractive as these options appear, they are not the norm for everyday investors. Provided you have the wherewithal to diversify your resources across as many different asset classes as possible, returns in the region of 20% – 30% may be possible. In conventional investments, positive returns stand to be gained but they are unlikely to be exceptional returns.

Contrarian Investment Options for Savvy Traders

One of the ways to break the mold and move into high-yield investments is through alternative or contrarian investment vehicles. These types of investments abound in the form of contracts for difference (CFDs), currencies (Forex), peer to peer lending, social trading, purchasing pre-IPO equities and the like. These investment vehicles are traditionally regarded as higher risk options, but they are associated with higher rewards. Contracts for difference are derivative financial trading instruments. Unlike stocks, the trader is not required to purchase the underlying asset (Forex, commodities, stocks etc.). Rather, the trader acts as a speculator and goes long or short on the future price of that asset. Derivatives trading is extremely popular in the United Kingdom, Europe, and North America. It is an unconventional investment, but healthy returns are commonplace.

The Social Trading Boom

Perhaps the biggest change to take place in the alternative investment universe is social trading. This has been going on for quite some time, but it remains as popular as ever. With social trading, the individual trader uses the wisdom of the crowd to make investment decisions. Since there is 100% transparency with other traders, it is easy to pinpoint traders who are successful and generating a profit. By following these traders, copying their trades, and collaborating with them, it is possible to piggyback off their success and generate profit accordingly. There are a myriad of high-quality social trading accounts available to traders nowadays.

It’s imperative to evaluate them based on their strengths, asset variety, transparency, credibility and client feedback. The social trading boom has dovetailed with mobile trading, and the disintegration of the institutional trading paradigm. In the days of old, traders relied on wealth management specialists, investment gurus and fund managers to handle their finances. Nowadays, anyone, anywhere can power up and trade at the click of a button.

Robo Advisors Making a Big Impression

Robo advisors are a new age investment resource that make it easy for traders to make smarter investment decisions. Now that Robo advisors are available to the global market, it’s possible for anyone to access these powerful trading resources to make the smartest investment decisions. Typically, Robo advisors are online resources that are geared towards automated management of your portfolio. They are available at a fraction of the cost of a traditional financial advisor or financial planner, and they offer useful information on things like rebalancing your financial portfolio, taxation-related issues, and wealth optimization strategies. For further information on this powerful contrarian resource option, take a look at Robo advisors explained. These tools should not be discounted in terms of their utility value, since they can dramatically enhance your financial net worth.

Pre-IPO Investments

It is a little-known fact that it is possible to invest in a company before it goes public with its IPO. Fortunately, many private companies are only too eager to have big investments lined up before they go public, with pre-IPO equity as part of a financial portfolio. Oftentimes it is said that the early bird catches the worm – and with a pre-IPO investment, this is precisely the benefit you will receive!