5 investments to consider during an economic recession

Yieldstreet staff

June 1, 2020

Towards the end of the impressive bull market of 2009-2019, many analysts predicted a market correction as a looming threat on the horizon. There was uncertainty, however, as to what the catalyst would be for this economic downturn.

“Pandemic” was not likely high on this list, but many of the same characteristics of previous recessions are coming to fruition in this current period of uncertainty—rising unemployment, a sharp drop in the stock market, and declining consumer confidence.

Due to these similarities, it’s possible that this current era will be looked back upon as a buying opportunity for savvy investors, similar to previous recessions. While the health and safety of you and your family is far more important than your portfolio allocation, it may be a good idea to explore some of the investment opportunities available to you to potentially earn investment income while stuck at home.

Many investors (you may be one of them) aren't aware of the alternative investment options available to them. Instead of putting all your hard-earned money in the same baskets, consider these 5 alternative investment strategies:

1. Invest in a rental property

Rental investments can often be a great way to earn returns, plus you can benefit from any rise in property value.

2. Invest in alternative assets

You can now invest online in asset classes such as real estate finance, legal finance, marine finance, art finance, and commercial finance. These alternative investments typically have a low correlation to the stock market. For example, Yieldstreet.com offers investments in all of the asset classes mentioned above.

3. Invest in a REIT

REITs are companies that either own or finance income-producing properties such as apartment or condominium complexes, shopping centers, hotels, and warehouses, just to name a few examples.

4. Invest in a franchise

A franchise is a license you buy that allows you to run a business under the name of an already-established business, such as a McDonalds, Dairy Queen, or even a Holiday Inn.

5. Peer-To-peer lending

Also known as social or crowdlending, peer-to-peer lending connects borrowers looking for alternative forms of capital with lenders (such as you). Beyond being beneficial to those looking for financing, it can also be a good way to get returns as an investor.

Not sure where to start?

One way is to explore online marketplaces like Yieldstreet.com.

Yieldstreet is an alternative investment platform that connects you to income-generating investments that traditionally have been reserved for institutions and the ultra-wealthy.

To date, Yieldstreet has returned over $600 million in investor principal and interest paid and boasts over 216K members and counting.

Yieldstreet has been featured in the Wall Street Journal, Bloomberg, Hedgeweek, and Cheddar, just to name a few.^a

In 2019 the Inc. 5000 ranked Yieldstreet as the #1 Fastest Growing Financial Services company in the United States^b, and the 14th fastest growing company in the United States in all industries.^c

Anyone can create a free account with Yieldstreet by clicking the link below. Have additional questions? Reach out to our Investor Relations Team at [email protected].

^a https://www.yieldstreet.com/press

^b https://www.inc.com/profile/yieldstreet

^c https://www.inc.com/inc5000/2019/top-private-companies-2019-inc5000.html

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