Tag: alternative investments

Alternative investments are high priced items like art and sports cars that investors seek to collect and possibly profit from. Our view is that you can't really invest in art or cars. An investment is something that may one day produce income – dividends from stocks, interest from bonds, rent from real estate, and so on. Art and similar alternative investments produce no income. In fact, art and expensive cars consumes income: you have to pay to insure and/or store it. It's also expensive to buy and sell. Unlike some other alternative investments, the supply of art keeps growing. Fashions change and buyers often prefer something new. So your artwork probably won't bring the price you need to show a profit. That's why profitable art investments are rare. The vast majority of art and automobiles depreciates from the time of its first sale. Purchasing an alternative investment like art or cars should always be thought of as a hobby, rather than an alternative source of income. For investment success, on the other hand, follow TSI Network and us our three-part Successful Investor strategy:

  1. Invest mainly in well-established companies;
  2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
  3. Downplay or avoid stocks in the broker/media limelight.

The key to finding the “hidden gems” in penny stocks is to understand and avoid the risks that go with them. You get the benefit of Pat McKeough's decades of experience-and his specific recommendations-in our special report, Canadian Penny Stocks: What You Need to Know about Handling the Risks and Reaping the Rewards, on TSI Network. Claim your FREE copy right now!

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What are blue chip companies?

January 5, 2019||Blue Chip Stocks

A blue chip company definition and some examples of blue chip companies we recommend
You may be surprised to find out that the root of the term “blue chip” stems from the game of poker, as the blue chips represent the highest value. At TSI Network,… Read More

How ‘alternatives’ can fit into a portfolio

September 13, 2018||ETFs

“Alternative investments” is the collective name for a diverse group of assets that do not fall into one of the traditional asset classes of stocks or bonds. Alternative assets can include real estate, private equity investments, commodities, infrastructure, hedge funds, collectibles, and even art and… Read More

It pays to be cautious with alternative ETFs

September 13, 2018||ETFs

Direct investment in private equity, hedge funds and so on was once just for institutional and high-net-worth individuals. However, alternative assets are now also available through a limited number of ETFs. While they focus on high-risk investments, many aim to use strategies to cut some… Read More