Stock and Bond Replacements
Stock (Equity) and Bond (Debt) Replacements Financial advisors and investment managers should consider absolute returns in all market conditions, not just traditional asset classes when building an investment portfolio for a client. Investment strategies necessitate the need to look outside the traditional stock and bond portfolios of yesteryears and include assets which are viable replacement vehicles (Alternatives) such as Crowdfunding (CF) and Peer-to-Peer lending (P2P). The DNA of an investment portfolio cannot afford to limp around after a stock market correction because of the confinement of products to a single mindset of correlated investments in one area of investing. Background Crowdfunding (CF), like Peer-to-Peer lending (P2P) is a method to raise funds or capital for various projects, like start-up businesses or real estate investments. CF uses the Internet and software platforms to appeal to a wide audience (The Cr