Sharebid Blog

A Generational Shift in Investment Strategies

Posted on 2018-03-15
Stocks and bonds have traditionally been considered one of the best places to invest for long-term security. Most recently, however, especially during the millennium, the status quo has changed. Alternative investments present investors with a whole new approach, but what makes these investments so attractive to a new generation of investors? In order to uncover why the trend is the way it is, we have to understand what alternative investments are.

What Are Alternative Investments

Alternative investments involve a whole range of options. These include investing in real estate, antiques, artwork, wine, stamps, and also financial assets such as REITs, hedge funds, venture capital, private equity, and commodities.

One of the major differences between alternative investments and more traditional ones is the way they are sold. Unlike stocks, which are traded in a structured market, alternative assets tend to be traded through broker dealers, private sales, or on sites such as SHAREbid, eBay or Craigslist.

Benefits of Alternative Investments

There is a growing demand for alternative investments as a way to diversify a portfolio and provide a hedge against inflation. Alternative investments are less liquid and tend to be held for a longer period of time, benefitting from the lower tax rates of the capital gains tax. Although investing in private company shares is considered risky, the upside can be huge!

“I am an active investor of private company shares due to their tremendous upside potential. The opportunity to get on the ‘band-wagon’ early is very attractive to me; think eBay, Uber or Facebook.” Tim Joyce, Investor. With liquidation tools such as SHAREbid, investors and employees of private companies have the option of selling their shares to accredited investors without paying any fees as the buyer or seller.

Other factors that might encourage someone to leave traditional stocks and bonds for alternative investments include:

✔Diversification

A diversified investment portfolio, especially one that includes alternatives in addition to stocks and bonds, helps reduce the adverse effects of market volatility as there are many options for an investor to recoup his investments.

✔Growth

Alternative assets have a high potential of growing in value. Although, some alternative investments are dependent on a company's profit for the year, generally they increase the returns of investors over time and also provide a broader option of investments and strategies.

Historically, one of the major weaknesses of private share investing has been the lack of a functioning secondary market. With SHAREbid’s revolutionary online platform, private companies can now offer their shareholders the long-awaited option of liquidity.

As alternative means of investing provide many new opportunities for investors, technology, legal frameworks and increased access to information make these investments more attainable. It really is no surprise that over time, alternative investments will become increasingly more desirable and perhaps even necessary for a balanced portfolio.

Do you own shares in a private company?
Learn how you can sell them with no fees to the buyer or seller.



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