A Valuable Review of “Alternative Investing: Making Money Outside of the Stock Market”
During the economic downturn of September and October 2008, most investors lost a lot of money due to a major banking crisis that caused the stock market to crash. For those who had most of their money in the stock market, the crash turned into a catastrophic nightmare. In many cases, people lost everything, not just in the stock market, but in most other investments as well.
In 2012, financial researcher Robert Cancellaro published a book that challenges what most investors would say, “No.” “Bad idea”, “It won’t work”. Alternative Investing: Making Money Off the Stock Market presents a revolutionary idea that “collectibles” are better investments than traditional investments such as the stock market. Collectibles have no financial ties to the stock market, but have the financial strength to make money.
Cancellaro investigates seven categories of collectibles that have historically gone up in value. The following categories are known as tangible assets: items you can and definitely do have autographs, postage stamps, precious metals and coins, comic books, sports cards, and investment-grade wine. Why did the author choose these “misfit” collectibles as investments? Answer: They have consistently outperformed the S&P 500 by a wide margin.
All seven categories include their own lists of specific items that have steadily increased in value over their lifetime and have maintained consistent appeal to those who purchased them. However, before you buy anything, it’s important to learn as much as you can about collectibles. The Internet has endless resources; the most important are included in Cancellaro’s book. In addition to the Internet, you can visit and search libraries or bookstores to find books that contain general information and price guides.
The keys that drive the values of collectibles are based on the fact that they are tangible. In other words, they can be touched, making them part of the law of low supply, high demand. So Cancellaro’s list items are hard to find, but they’re popular and a lot of people want them, which increases their value. For some collectibles, their conditions are extremely important; the better the condition, the more valuable it could be. Items on Cancellaro’s lists are expensive. If you want the item, you may have to pay a lot, but it will most likely increase in value over time. Above all, time is your most important ally because the longer you keep it, the more value it adds to your collectible. Therefore, it is important to safely protect your collection from the elements and remain in the same condition that you purchased it.
Autographs, postage stamps, precious metals and coins, comic books, sports cards, and investment-grade wine can all become part of your investment strategy. You shouldn’t always trust the stock market; it can go up as well as down, while the values of collectibles have remained more stable. Gaining information is imperative to purchasing reliable collectibles that hold their value. Not only is this a sensible and smart move now, but it will also protect you financially against the next stock market crash or global financial crisis. Additionally, Cancellaro lists specific recommendations for what to buy in the seven categories. When the economy tanks next time, don’t waste your money on the stock market. So choose carefully, buy and hold an alternative investment.
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