Would you like to ride in my beautiful balloon?
That’s the opening lyric from the old hit, “Up, Up and Away,” by the 5th Dimension.
That lyric seems strangely applicable today, as the Dow was up some 303 points, or 1.4%, in Wednesday trade. The Industrials also have eclipsed the 21,000 mark for the first time to close at yet-another record. Not only was this the best market day of 2017, but also the best day since the November election.
The high-flying market is going up, up and away, and that can be attributed directly to the positive reaction traders had to President Trump’s first address to Congress and the nation last night.
Striking a more optimistic note, and certainly a more measured tone, than ever before, Mr. Trump laid out a vision for America that emphasized economic growth, including tax reform and Obamacare repeal/replace.
The president also spoke of increased spending on infrastructure and national defense.
Well, that’s just what markets wanted to hear, and in a manner that made Mr. Trump seem presidential to even many of his harshest critics.
Given how strong this market has been since Election Day, our recent article on alternative investments may seem like a case of bad timing.
Yet that notion couldn’t be further from the truth. In fact, it’s when times are good that you want to make sure you have a “Plan B” in place for your money.
Think of it this way: If the bottom falls out of this market for whatever reason (the most likely would be policy disappointments in Washington), then don’t you want to know what the alternatives are before things go south?
The only logical answer is yes.
That’s also one reason why we asked for your feedback on the issue of alternatives, to find out what you want us to provide further stories on.
So, while the flame burns like a red-hot bull on Wall Street, your stocks keep on shining. And, that shine is the perfect light in which to examine the alternatives.
Here’s a sample of which alternatives readers told us they wanted to find out more about.
Long-time reader and frequent contributor F151 writes:
Would be interested in: 1. Peer Lending investments 2. Life Insurance settlement investments 3. Coins 4. Other collectibles
Andy A. writes:
Since collectables are not IRA legal, items such as art, cars, stamps, etc. need to be held in taxable accounts. Still I’d be interested in a fund that deals in collector cars or an art fund that that does not require one to be an accredited investor.
Lyle C. writes:
I would like to know more about the alternatives to stock and bonds, particularly commodities, equity funds, hedge funds and REITs in that order.
Dale E. writes:
REITs, commodities, closed end funds & insider possibilities would be great subjects to get more investment info on.
Brad response: Collectibles, REITs and commodities were a common them among those who wrote in to tell us what they wanted to find out more about. Of the three, collectibles are the most difficult to invest in.
In the case of REITs and commodities, the growth in recent years of exchange-traded funds (ETFs) has made investing in these areas very easy.
For example, the Vanguard REIT ETF (VNQ) and the iShares U.S. Real Estate ETF (IYR) are both excellent ways to get REITs into your portfolio.
Both offer diversified exposure to the REIT universe, and both are good choices as part of a well-rounded income-oriented portfolio.
As for collectibles, there is no direct way I know of to get ETF-style exposure to the space.
There is, however, a company called Collectors Universe Inc. (CLCT).
This company basically provides third-party authentication services for rare and high-value collectibles such as coins, trading cards, sports memorabilia, etc.
While not a direct investment in collectibles, the company’s services do generate revenue from the collectibles market. The shares also attract buyers. CLCT is up 53% over the past 52 weeks.
Let’s keep the conversation going. If you want to weigh in on the issue of alternatives, or on the latest record day on Wall Street, then jump right in. Doing so is easy, too, as all you have to do is leave me a comment on our website or send me an e-mail.
Good luck and happy investing,
Uncommon Wisdom Daily