- December 12, 2021
- Posted by: Robert Brown
- Category: Investing
During the economic recession in September and October 2008, most investors lost a lot of money due to a huge banking crisis which caused the stock market to crash. For those with most of their money in the stock market, the crash became 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 investigator, Robert Cancellaro published a book that challenges what most investors would say, “Nope”. “Bad idea”, “Won’t work.” Alternative Investing: Making Money outside the Stock Market introduces a revolutionary idea that “collectibles” are better investments than traditional investments, like the stock market. Collectibles have no financial ties to the stock market, but they 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 hold and definitely hold onto 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 large margin.
All seven categories include their own lists of specific items that have consistently increased in value over their lifetime and have held steady appeal to those who have bought them. However, before you buy anything, it’s important to learn as much about collectibles as you can. The Internet has an endless number of resources; the most important ones are included in Cancellaro’s book. In addition to the Internet, you can visit and search libraries or bookstores to look for books that contain general information and price guides.
The keys that drive collectibles’ values are based on the fact they are tangible. In other words, it can be touched, making them a part of the law of low supply and high demand. So, the items in Cancellaro’s list are hard to find yet they are popular and many people want them, which increases their value. For some collectibles, their conditions are extremely important; the better the condition, the more valuable it might be. The items in Cancellaro’s lists are expensive. If you want the item, you may have to pay a lot, but its value will most likely go up over a period of time. Above all, time is your most important ally because the longer you keep it the more value it adds to your collectible. So it is important to protect your collection safely from the elements and stay in the same condition you bought it.
Autographs, postage stamps, precious metals and coins, comic books, sports cards and investment-grade wine can become part of your investment strategy. You should not always trust the stock market; it can go up just as much as it can go down, whereas collectibles’ values have remained more stable. Obtaining information is a must for buying trustworthy collectibles that keep their value. Not only is it a sensible and clever move now, but it will also financially protect you against the next stock market catastrophe or world financial crisis. Also, Cancellaro lists specific recommendations on what to buy in all seven categories. When the economy sinks the next time, don’t squander your money in the stock market. So, choose carefully, buy and keep an alternative investment.