5 Ways to Invest Outside the Stock Market

Tumultuous Markets Start 2016. If you have money you’d like to invest, you may be looking to alternatives to the stock market. While recent years have shown tremendous gains in the market, 2016 has started off bumpy, to say the least. The markets have seen big downturns since the beginning of the new year, and much of this volatility is blamed on declining oil prices, along with global economic fears including a Chinese slowdown.

Investors are rightfully a bit wary of investing in the stock market, particularly as the Federal Reserve may ease its own flow of money into the market at any time.

So how do investors earn money on their savings if they’re not part of the stock exchange?

Real Estate

While the stock market may be on shaky ground, causing anxiety for many investors, 2016 is shaping up to be a good year to invest your money in real estate. Many markets around the country, including New York and San Francisco, are seeing growth that’s exceeding all records, and smaller markets are also showing strong housing prices and a reduction in available stock, all of which point to an investment opportunity. The rental market also remains high, so investors may consider purchasing properties to offer to renters.

CDs

Interest rates are historically low right now, so something like a CD isn’t going to show a tremendous return, but they are a favorite way to invest for people who are cautious about the potential risks that come with something like the stock market, or even real estate. CDs are a solid investment opportunity, and while returns are relatively small, over time they can become significant.

Peer-to-Peer Lending

Increasingly investors are looking for new opportunities, and one that’s emerging is peer-to-peer lending. Many of these peer lending platforms yield substantial returns, and according to CNBC, it’s ranged from about 5 percent to 9 percent for Lending Club and Prosper Marketplace, which are two of the largest peer-to-peer lending platforms.

Bonds

Bonds aren’t a new investing opportunity—in fact, they’re one of the more long-standing and relied upon ways to invest money, but they’re an excellent option, particularly in an environment of uncertainty. In addition to safer bonds, if you want to take a bit more of a risk you can also invest in emerging market bonds.

Precious Metals

Precious metals have been a long-time investment opportunity for people who wanted to avoid directly investing in the stock market. Their value does tend to go up and down, but they remain a relatively reliable place to put your money. As the rest of the economy may become tumultuous, the price of gold and other metals usually rises.

Finding a Safe Haven For Your Money

Smart investors work to diversify their investment strategies, particularly in the face of such massive ups and downs in the stock market as what we’ve seen in the past decade. With a little research and willingness to explore your options, you can avoid the stress that comes with being a market investor, and instead find creative new ways to grow your money and protect against inflation.