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A Plain English Guide to Alternative Investments to the Stock Market

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Additional, Non-Stock Market Investments

You may want to diversify your investment strategy beyond the regular stock markets, without wanting to get into risky securities like penny stocks or ForEX, more complex securities like options & derivatives, or have to deal with commodity futures (like oil, corn and copper).

The most common, non-stock market investments is, in one form or another, property - i.e. something you can physically touch, have or build a house on, put in your pocket, hold in your hand, put on the wall, etc.

The main disadvantage common to non-mutual fund investments, including owning individual stocks and bonds, is liquidity. You may own a piece of prime real-estate, or a block of desired stock, but what will happen if you need to liquidate in the next few days?

If you understand the risk of not being able to liquidate as fast as you need (or ever), property can be a way to diversify your wealth & add to your net worth.

1. Real Estate - real property can be a valuable long term investment. One thing that should be pointed out right away is that your primary residence should not be thought of as an investment even though you do build equity and it's value may increase over time and contribute to your net worth.

Things to consider when looking at real estate:

2. Gold, diamonds & other precious metals and gems:

3. Art, antiques and other collectables:

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