(BPT) - As a volatile market sends ripples through the global economy, many investors are worried about how events overseas will impact their portfolio. In addition, concerns about political instability in much of the world have contributed to a heightened sense of worry and stress among investors. However, while the risks in traditional markets are real, 2016 is full of opportunities for the investor who is willing to think a little differently.
In the face of these uncertainties, the standard advice is for investors to diversify their portfolio. Many have been doing this by taking money out of their dividend-paying stocks and corporate bonds and investing in marketplace lending.
Marketplace lending platforms, sometimes called peer-to-peer (P2P) lenders, are online marketplaces that connect credit-worthy borrowers with individuals seeking investment opportunities. This gives individual investors low-cost access to high-yield consumer loans - an attractive new asset class that was previously only accessible to large institutions.
As an alternative investment strategy, investing in marketplace loans has helped investors diversify their portfolio.
Early investors discovered five secrets that are still the keys to understanding why more people are choosing to diversify their portfolios through marketplace lending. They are:
Interested in Publishing on The Money Idea?
Send your query to the Publisher today!
Get this money content for your website with our RSS Feed below!