In the series “Money Bear Club Answers”, Money Bear Club will publish the best answers from its Quora profile. The answers will range widely from business and investing, to budgeting and the philosophy of the everyday life. Read on to find out more unconventional perspectives and solutions!
Originally answered: January 11th, 2019.
What are some unconventional ways or places to invest money?
First off, let’s look at the investments which are conventional. The definition of “conventional” I’m going with is “Based on or in accordance with general agreement, use, or practice; customary”.
So, a conventional investment will be the one most investors use; and the top choices for investments.
The first thought that comes in most people’s minds when thinking about investing is the stock market. Stocks are the ultimate conventional investment.
What investments are also widely accepted and popular? Savings accounts definitely. Bonds, maybe; and to an extent, in USA, mutual and index funds.
With confidence I can say that asking an average American or an European “What is derivatives trading?” would yield a confused look.
So, for unconventional investments, in this case, unconventional places to invest, we’re looking at obscure and less popular investments.
Things like options trading, futures, commodities, CFDs and similar investments are definitely unconventional places to invest money.
Few people choose to place their savings in peer to peer lending or real estate crowdfunding platforms.
Few people know that governments provide more opportunities to invest than just by issuing bonds. Even fewer will think about making money from venture capital trusts or angel investing.
An unconventional place to invest money can also be a real, physical, place. Backing a local business, or a company in a country, where the investor is not a resident, is also unconventional.
These are some unconventional places to invest money.
But what about unconventional ways? Unconventional ways to invest would be the ones which go against the grain.
That’s an easy question. Investors who choose to pour cash into investments during downturns instead of keeping it safe, investors who choose to think on their own instead of following what the talking heads say on TV, are investing unconventionally. Investors who are able to see what a market is really worth, instead of the facade it presents, are all investing in unconventional ways.
Writing down all the ways for unconventional investing would be just finding opposites for the most popular investment strategies.
The real unconventional investing probably lies in the fundamentals more than the technicals. The many different types of investing-related curves and diagrams are helpful for making decisions. Yet, even the best economies and investments, with great numbers, fail.
A conventional way to invest would be making investment decisions by looking at charts and numbers. When the investment fails, the investor would then just look at more charts and numbers, to understand what was their mistake.
However, chart and number interpretation and the assigned meanings of them are just that, assigned. Making future predictions from past data and from flawed reasoning is bound to be not successful 100% of the time.
So, a way to unconventionally invest would likely be placing 80% of importance on the fundamentals, and 20% on the technicals of an investment.
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