You are on page 1of 5

Past: It has been 10 years since alternative investments burst onto the scene.

In 2009,
after the financial crash, they were the mutual fund story, gathering much of the industry’s
headlines. Hundreds of alternatives funds were launched over the next several years.
Exchange-traded funds followed suit, with offerings that ranged from staid to highly
speculative.
The timing was poor; with one notable exception (more on that later), equities have since
pounded all rivals. For stock-heavy investors, alternative investments have come in two
flavors: 1) mostly useless and 2) thoroughly useless.
Wine: Fine wine was the best investment of the decade, with the top French vintages
earning returns that far outstripped equities, gold and property. The average price of a
fine Bordeaux red jumped 138% in the noughties, equal to a gain of 11% a year, with the
most sought-after labels, such as Laffite Rothschild, up almost 10-fold.
The Liv-ex Fine Wine Investable Index, which tracks the price of notable Bordeaux reds
from 24 leading chateaux found that between 31 December 1999 and 31 October 2009
there was a 138% return on investments across this range. The best performer was Laffite
Rothschild 1982, which cost £2,613 for a case of 12 bottles at the beginning of 2000 and
sold at the end of last month for £25,500, a return of 876%.
Behind the price surge is a limited supply and an influx of new-money buyers from China
and the rest of Asia. Specialists reckon that, as China continues to industrialize, prices
for fine wine will continue to soar.
Classic cars:
Classic cars enjoyed a huge boom in prices in the 1980s, followed by a painful crash in
the early 1990s. But despite a decade renowned for City bonuses, relatively little of it has
poured into classic Ferraris, Mercedes and Aston Martins.
Coys, the UK's leading auctioneer of classic cars – which also holds sales in Monaco,
Italy and Germany, says that while the most sought-after cars have accelerated in price
by 200% or more, the majority have stayed in the middle lane, enjoying rises of between
10% and 50% over the past decade.
Art
Advertisement
It is almost impossible to accurately measure the return on art over the past decade.
Auction prices are only of limited help as they don't take account of the large amount of
art sold privately for undisclosed prices. It's also hard to measure the decade's increase
in value unless the same works of art came up for sale both in 2000 and 2009 – and not
many have.
A few facts, however, may shed light on the decade's price trends, at the top end of the
market at least. First, total sales of all art worldwide at Christie's auctions came to £1.5bn
in 2000, compared with £2.8bn in 2008. That's an increase of 87%.

Present: Most people think of investing as buying stocks, bonds, mutual funds, or
exchange-traded funds (ETFs). The more adventurous might think about a real estate
investment trust (REIT). Some people also might consider buying stocks of mining
companies or investing in a metals ETF as a way to invest in gold, silver, platinum, and
other metals.
But what if you want to avoid anything that trades through a broker or online discount
broker? That's where alternative investment opportunities come in. Some of them can
make you a lot of money, and some of them may make you a more modest profit. Either
way, you're not trapped into choosing stocks, bonds, mutual funds, and ETFs that are
traded publicly.
When you start thinking about alternative places to put your money, you must avoid
scams and get-rich-quick schemes. Instead, focus on legitimate investment vehicles that
may help you prosper. Here, we've selected five types of legitimate alternative
investments to consider in 2019.
Peer-to-Peer Lending:
Peer-to-peer lending also known as P2P lending, is a relatively new phenomenon. Online
P2P services offer loans for businesses, personal use, or anything else you can imagine.
If you join the pool of investors who are willing to loan money to others, then the loan can
be funded by you once the borrower qualifies.
Real Estate:
When investing in real estate, you can buy and own property. You buy a house, duplex
or multi-family dwelling, like an apartment complex, have tenants live there, and collect
rent. In many cases, you make a down payment, and the bank finances the rest. You get
the rental income and appreciation from the property.
Gold:
Gold is widely regarded as a tangible inflation hedge, a liquid asset, and a long-term store
of value. As a result, it is often a sought-after asset class and can be a strong competitor
in stocks.
Gold is regarded as a great diversifier because of its low correlation with other asset
classes, especially stocks. This becomes more pronounced in tougher times when gold
can act as a rescue asset.
Owning Your Own Business:
You can use your money to invest in your own business, which has the potential to
produce the highest returns of all your investment choices. It can also fail and cost you a
lot of money and sorrow. However, it's possible for your businesses to produce a steady
income and grow over time.
Some businesses have very low startup and ongoing costs. These include virtual or online
businesses, like teaching, consulting, coaching, and IT support.
Equity Crowdfunding:
If you don’t want to own your own business, you may want to consider owning part of
someone else’s. Startup companies that need money can offer shares of their companies
on equity crowdfunding websites. These sites include AngelList, CircleUp, Seed Invest,
and We funder, and more.
If you invest in a company over an equity crowdfunding site, you own part of it and will be
rewarded if the company succeeds. The risk is that if the company fails, you lose part or
all your money.

Future: This report examines the forces driving today’s alternative investment industry
and considers where these may take the industry in the coming years, focusing on the
core asset classes of private equity buyouts, hedge funds and venture capital. The goal
of this report is to provide readers in the global investment and financial services
industries with a perspective on how the industry may evolve over the coming decade
and which business and investment models successful alternative investors and capital
providers will employ to navigate the changing ecosystem.
Venture capital:
Venture capital is a type of private equity, a form of financing that is provided by firms or
funds to small, early-stage, emerging firms that are deemed to have high growth potential,
or which have demonstrated high growth.
Hedge fund:
A hedge fund is an investment fund that pools capital from accredited investors or
institutional investors and invests in a variety of assets, often with complex portfolio-
construction and risk management techniques.
Private equity buyout:
In private equity, funds and investors seek out underperforming or undervalued
companies that they can take private and turn around, before going public years later.
Buyout firms are involved in management buyouts (MBOs), in which the management of
the company being purchased takes a stake.

Cryptocurrency:
In 2008, Satoshi Nakamoto had created a new currency called Bitcoin. A decade later,
that currency grew exponentially. First breaking the $1,000 mark then continuing to the
$5,000 and $10,000 mark only to finally crash at around $20,000.
So why did it crash?
Many people seem to link some real-life event to the fall and rise of prices, at least when
looking at the Crypto Markets. However, most of these “reasons” are false. When the
market crash, news sites try and find a reason behind the crash for a more interesting
story. Along with that, it is beneficial to those that control the Bitcoin supply to have people
think that these fluctuations are caused by anti-market events in the world, not by Bitcoin
itself.
Bitcoin did not crash because of regulations or any other reason that the media tries to
sell to you. Bitcoin crashed because it was set up in the crash.
Four years after its creation, on November 19, 2013, Bitcoin crashed from $979 all the
way down to $300 overnight and continued a slow downtrend for two years. On November
2015 it started its uptrend again. Another two years later on December 11, 2017, Bitcoin
crashed again, almost the exact amount as it did four years ago, by 70% overnight.

Conclusion:
The alternative investment is past year for long term investment and high growth profit for
industry. It is that very frequently investment change as you can see in above highlights
in respect of economic diversifications, the investors also belief now a day’s diversification
investment to get higher return also with higher risk that’s in future investors focuses on
private equity fund and hedge funds because they get higher return which is also moving
forward market to grown with these marketable situations and growing rapidly.

You might also like