Predictably, ongoing stock market volatility is once again eroding returns for people who are counting on traditional vehicles like stocks, bonds and mutual funds to provide enough investment income to enjoy a stable retirement. This week, market instability continues to create a climate of uncertainty, with the Dow dropping nearly 500 points amid fears of a trade war.
“The Dow closed down 459 points on Monday, while the Nasdaq plunged almost 3% and dropped into the red for the year”, wrote CNN Money. “At one point, the Dow was down as much as 758 points in a brutal day of trading for the second quarter of 2018”.
Earlier this year in February, a predictable stock market correction marked the largest one-day drop in history, costing the world’s richest people hundreds of billions of dollars and decimating the return on investment everyday investors will see. This, combined with ongoing stock market volatility more than two months later, has effectively eliminated recent gains and is proving once again that alternative investments like real estate are a vital part of any successful investment strategy.
“Amid worries of a trade war and fears of the tech industry getting hit with regulation, the stock market kicked off April with its worst start to the second quarter since the Great Depression”, wrote CNBC. “The Dow Jones Industrial Average fell 458.92 points. Meanwhile, the S&P 500 fell 2.2 percent and the Nasdaq composite fell nearly 2.7 percent. Both closed in correction territory”.
Although your typical investment advisors will almost always tell you to stick with the long-heralded “buy and hold” strategy, this just isn’t realistic for anyone who needs stable, ongoing investment income to fund retirement or other ventures, and it can literally spell disaster for those who can’t afford to gamble with their hard-earned money.
“Wall Street is also fretting about rising trade tensions, especially with China”, CNBC added. “After spiking last year, the stock market has hit extreme turbulence during the first three months of the year as investors worried about tariffs, inflation and tech stocks”.
Looking back historically, it’s pretty obvious that the stock market roller coaster ride isn’t going to slow down or become more predictable, which means your retirement account will suffer over the next decade and beyond. Most investors simply can’t afford to put all of their eggs in one basket, so to speak. Especially when that basket is controlled by global economic forces that are well outside of their realm of control!
Fortunately, alternative investments like real estate offer a time-tested, safer option that is also a hedge against inflation, provides stable income and is not subject to ongoing stock market volatility. The key to successful real estate investment, however, is knowing where and what types of investment properties you should buy. For example, right now in Mexico’s Riviera Maya, income producing properties are paying annual returns of 8-14 percent, as well as exceptionally rapid appreciation, thanks to the region’s safety, natural beauty and immense popularity among tourists from around the world.
Stretching for more than 80 miles south from Cancun along the Mexican Caribbean coast, the Riviera Maya is home to the vacation hotspots of Playa del Carmen, Cozumel, Puerto Aventuras and Tulum. Demand for vacation home rentals in this region has been outpacing supply for years, creating an ideal environment for real estate investing of all kinds. This includes buying and holding raw land in the path of growth for future development, to investing in turnkey vacation homes and luxury condos that provide stable, ongoing investment income and a completely stress-free ownership experience.
The bottom line? Don’t let your location or lack of knowledge prevent you from looking at stable alternative investments like real estate, which can combat stock market volatility and provide secure investment income for the long term. Your retirement will thank you!
Were you already aware that alternative investments like real estate can provide stable, ongoing return on investment? Let us know in the comments!
Read How to Beat the Stock Market with Investment Property in Tulum and start your journey to financial freedom today!