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There are many conversations about investing in the publicly traded markets. (eg. stocks, bonds, mutual funds, etc)
In this thread, let me start a discussion on the investing instruments and/or asset classes that are NOT correlated (or minimally correlated) to the generally known stock and derivative markets. This means that possible gains are generally not influenced by the daily fluctuation in the broader stock market.
Let's brainstorm or share some ideas. I'm not interested in if the idea is good or bad. The merits of each investment vehicle can be discussed in a new separate thread.
Here are some off my head..
In this thread, let me start a discussion on the investing instruments and/or asset classes that are NOT correlated (or minimally correlated) to the generally known stock and derivative markets. This means that possible gains are generally not influenced by the daily fluctuation in the broader stock market.
Let's brainstorm or share some ideas. I'm not interested in if the idea is good or bad. The merits of each investment vehicle can be discussed in a new separate thread.
Here are some off my head..
- Rental Properties
- REIT - Real Estate Income Trust
- Life Insurances - A contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness (Wiki)
- Gold Bullion - Traditionally consider them a non-correlated asset class.
- Land Banking - Practice of purchasing land with the intent to hold on to it until such a time as it is profitable to sell it on to others for more than was initially paid (Wiki)
- Life Settlements - Refers to the sale of a life insurance policy by a policyowner for less than the face value of the policy to third party investors. (Wiki) From my understanding, this is not legal in Canada, but we can participate in the US market)
- Mortgage Investment Corporation (MIC) - Owning shares of the corporation enables you to invest in a diversified and secured pool of mortgages.
- Wineries - Private investment into the shares of winery. Perhaps you can get your dividend in bottles of wine
- Private Investment Fund in Care-A-Minium - Investing in a private/public retirement homes. Starting to take off in westcoast.
- Frontier Markets - It is commonly used to describe a subset of emerging markets (EMs). They are investable but have lower market capitalization and liquidity than the more developed emerging markets. The frontier equity markets are typically pursued by investors seeking high, long term returns and low correlations with other markets. (Wiki)
- Flow Thru Shares - Tax-advantaged investment in the Canadian natural resource sector. People purchase specifically for the tax credits.
- Segragated Funds - A type of investment fund administered by Canadian insurance companies in the form of individual, variable life insurance contracts offering certain guarantees to the policyholder such as reimbursement of capital upon death (Wiki)
- Angel Investor - An affluent individual who provides capital for a business start-up usually in exchange for convertible debt or ownership equity. (Wiki)
- Venture Capital Funds - Refers to a pooled investment vehicle that primarily invests the financial capital of third-party investors in enterprises that are too risky for the standard capital markets or bank loans. (Wiki). Working Opportunity Fund is one example.