Alternative Investment Tips for 2020

When it comes to alternative investments, there’s no time like the present to be looking towards the future. A new year is a perfect time to re-evaluate your investment portfolio – or even start to consider investing for your financial future. In 2020, there are a few changes to be aware of that could impact the way you choose to invest. Another key part of 2020 is that it’s an entirely new year and, thus, the perfect time to clean out the cobwebs on your investment portfolio and start the new year fresh. 

So what should you be considering when it comes to alternative investment strategies in 2020? Check out a few of our tips below.


Talk About It


The best thing you can do for your finances is to not keep them a secret. Talking about things means creating an open dialogue with those around you. One of your friends or colleagues may be able to share some knowledge they’ve come across in recent months that could lead you into researching an entirely new alternative investment strategy. 

Talking about investments doesn’t just stop with friends, family, and colleagues, either. You should also consider talking to a professional. If you haven’t already spoken to an advisor, we recommend reaching out to a few different companies and getting a few opinions on market recommendations for the coming year. You can never have too much information. 


Re-Evaluate Your Risk Tolerance & Goals


Just because your risk-tolerance was one way at the beginning of the year doesn’t mean it will stay the same at the end of it. Depending on how well your investments performed this past year, your aversion to risk may have adjusted accordingly. Understanding your investments and how they performed will help you better pivot and plan for the coming year. You’ll also have a clearer view of how you’ll be able to accomplish your goals based on how things went this year. 


Look at the Currencies


Currency trading is highly risky but can also be highly rewarding. This is not a strategy for the faint of heart or the individual limited on time. Despite the requirement to be always watching an ever-changing market, currency trading can be highly lucrative if done right. The trick with it is that you have to have a strong understanding of how currency trading works. 

Another currency-related alternative investment strategy to consider is cryptocurrencies. Some may have once considered this a simple trend, but it looks like it’s here to stay. The thing with cryptocurrencies is that there have been many scams reported regarding this form of investing. Use caution if this is something that interests you in 2020. 


Real Estate is a Great Home for Your Money


The Real Estate Market is recovering nicely from the dip in 2018. The Canada Mortgage and Housing Corporation (CMHC) has announced that the two-year drop in the Canadian real estate market is officially over, and we should expect to see a healthy real estate market in 2020. With home sales expected to grow in 2020 and 2021, the real estate market is positioned nicely in 2020 for investors to jump into. Investing in real estate could mean something as simple as buying a home or investing in property. Another great alternative investment strategy involving real estate is investing in a mortgage pool through a reputable Mortgage Investment Corporation (MIC). 


Look Towards Tech


In previous years, there has been a popular trend to invest in natural resources, such as oil and gas. Some would recommend looking elsewhere in 2020 due to the current volatility surrounding climate action strikes. This is an excellent opportunity to invest in the tech sphere. The great thing about tech companies, such as Shopify, is that they’re creating a platform that essentially creates its own industry. Due to this, there’s more long-term stability involved in this investment avenue. 


Keep Diversifying


You know the old English proverb you can’t have too many friends? Well, we’d like to say you can’t ever be too diverse when it comes to investing, either. In 2020, make sure to take a good look at your investment portfolio and see where you could further diversify your investment portfolio to protect yourself from specific market dips and volatility. 

The alternative investment industry may seem relatively new to many, but it’s a market of unlimited potential that offers investors more flexibility and a chance to take more control of their investment capital and diversify further. According to the World Economic Forum, the alternative investment industry will likely continue to see growth in the coming years as it matures.  For investors, that means seeing structural changes, developed relationships, and new regulations. It also means a large potential for growth and for the chance to tailor your investment portfolio to your specific interests and knowledge. 


If you’re interested in investing in the real estate industry through mortgage pools next year, get in touch with Jordan on our team today. 

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