When it comes to beefing up your portfolio, weed, Bitcoin and Gold are taking focus as viable investment vehicles. They not only get a lot of media coverage, but they are alternative investments that offer some interesting upside potential in an ever changing economic landscape. If you are in a position to incur a little or a lot of risk in your portfolio, there is a slim chance you could end up making a mint off these three investments. But, before you get too excited, there are three things you need to know before jumping in with both feet.
The Dirty Little Secret About Weed
A lot of companies are talking about entering the legal weed industry. They talk about it like they are already deeply invested and entrenched in the business of being a legal source of this hot commodity. Unfortunately, many of the companies insisting they are involved in the industry of legalized weed production are not as heavily involved as you might imagine. This is a misleading problem that has a lot of investors confused. Often the commitment of these companies is so insignificant, it becomes obvious that they are admitting to being involved in weed more for the publicity than for any other reason. So, if you want to get your hands on stocks of companies involved in the weed craze, you need to be certain that the companies you are buying stock in are actually involved in the weed industry in a significant way and not just claiming to be for effect. This will undoubtedly mean you will be stuck doing a lot of homework to determine which companies are significantly involved in weed and which are not. But, doing your homework on the investments you are getting involved in is how successful traders make a living in the market.
Bitcoin and the December Spike
If you are young and do not scare easily, then the extreme volatility of cryptocurrencies like Bitcoin may be just the type of investment you are looking for. But, if you were thinking of selling in May, as with other similar investments, then you should know that cryptocurrencies like Bitcoin play by their own rules. The spike you are looking for is likely going to happen in December, not May. So, if you want to make a significant return on your money, then waiting for the December spike may be your best option. While Bitcoin is a very risky investment to get involved in, it is not generally recommended that elderly investors put too much into this type of investment.
Fear Drives the Price of Gold
Even though the dollar has been stable, sentiment is that things will likely get worse. This has been the concern of many investors, resulting from the recent interest hikes in the market by the Fed. When interest rates increase, this gets many investors nervous. They start removing their money out of various investments, like stocks and mutual funds, in their portfolio and put that money into gold. Fear over what the Fed will do can have a huge impact on the price of gold. Add to this a modicum of uncertainty, and many investors will insist that gold is the only real investment you can trust in such uncertain times. It is best to add gold to your portfolio before there is a rush on gold, because the price of gold could raise significantly in the future months if that happens.