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Posted over 8 years ago

Smart Investing Calls For A Hybrid Approach

Intelligent investing requires a hybrid approach to putting your capital to work.

You’ve got to be strategic if you want to invest successfully. In order to achieve consistent returns, keep risk low, and keep the maximum upside potential, investors have to be diversified. They need a hybrid financial plan that will deliver the results they need, year after year.

Just look at the auto manufacturing industry. Traditional gas-powered car makers started taking a hit when regulations began aggressively pushing a green agenda, and gas prices skyrocketed. Tesla took off with its electric vehicles. Now, under the new administration old energy is back, gas is cheap, and old auto brands are once again expanding operations. We can be pretty sure this rollercoaster isn’t over yet.

To win the short and long game, and no matter what pivots show up, diversification is vital. Otherwise, you might as well just be going all-in on the roulette tables in Vegas. Yet, we’ve got to be intelligent with diversification too. Too many stock brokers will tell you just to spread your money across as many funds as possible because they have no idea what is going to crash or do well. That is neither strategic nor smart. And let’s be real; investing in tech or stocks right now, with such massive overvaluations is just asking for trouble. Trying to go the completely opposite direction and attempting to run a beauty salon, a body shop, and selling handmade crafts on eBay at the same time, and expecting to master it all is a crazy approach as well.

You need diversification, but you’ve still got to be smart. Invest in what you can understand, and in what makes sense. For many, this is real estate. We’ve all either rented or owned a home. Many have taken out mortgages in the past. There are many ways to be diversified just within real estate, and in a way that can enable investors to profit no matter what the market is doing. There are rentals, flips, notes, different areas and markets, various property price points, ugly and pretty houses, and different loan and property types. Those that are well diversified in this asset class will find that when one investment starts to get leaner, it is equally balanced out by another of their holdings.

How diversified are your investments? Are they diversified in smart places with a good outlook for the future? For those that need a way to restructure their portfolios efficiently, check out the new NNG Capital Fund and the hybrid approach it offers.

Investment Opportunities

Find out more about investing in secured debt and real estate, go to NNG Capital Fund

Image by Steve Buissinne from Pixabay 



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