Finding opportunities outside of traditional investments offers advisors unique ways to diversify portfolios. Crowdfunding is a way to participate in real estate investing without the traditional capital investment required. With the uncertainty of the new administration’s impact on policies, investors need to look for ways to reduce risk and increase growth.
Time for Investors to Join the Crowd? (U.S. News & World Report, January 4)
With regulations changing in recent years, investors have an opportunity to use crowdfunding to help diversify portfolios, especially in real estate. Regulation A+ helped create “a process that had previously been available to only a select few, and making it transparent, efficient and most importantly, widely available to people who until now had been unable to participate in these types of investments.” Although investments are now open to the public, certain investors can still get an edge with platforms that require proof of accreditation.
3 Top Growth Stocks for 2017 (The Motley Fool, January 5)
Growth-style investing requires patience and a long-term outlook. With a diversified portfolio, “allow your biggest winners to run: They compound their returns over time and overcompensate for the losses from the laggards.” The author of this article focuses on three qualities to identify successful growth companies, “operational performance, smart and visionary management, and huge market potential.” Looking at operational performance and the management team are good indicators of what direction a company is moving and how it will get there. Researching the industry and how the company fits into their industry is important when looking at long-term performance.
It’s No Longer Business as Usual for The Stock Market This Year (The Hill, January 3)
With the uncertainty of the new administration and their impact on policies and regulations, investors are trying to prepare for the coming year. The stock market responded positively since the election, however, there are too many unknowns to predict long-term effects. “If the new president moves forward with pro-growth policies such as tax reform, reduced regulation and repatriation of foreign capital, the economy and the stock market may continue to trend upward.” Investors should focus on creating a long-term diversified portfolio is order to withstand unknown.
2017 Is the Year of The Income Property (NuWire Investor, January 5)
Income properties offer investors both an income stream and capital appreciation. Real estate investments are a way to see returns in a market with both rising interest rates and inflation. With the volatility of the current market, traditional investments may not be the most profitable option. Real estate offers the security of hard assets, which is important to take into consideration with the uncertainty of the coming year.
3 Best Mid-Cap Growth Mutual Funds to Invest In (Zacks, January 5)
Mid-cap funds offer the benefit of both growth and stability to investors with potential to have larger returns than the industry average. Portfolios that are designed with mid-cap growth funds usually focus on “companies with market capitalization between $2 billion and $10 billion with solid growth prospects.” The author reviews three top-rated funds: Janus Enterprise S, JHFunds Mid Cap Stock 1, and Dreyfus Mid-Cap Growth F. All have the potential to outperform other similar funds in the future and offer investors some insight into mid-cap funds.
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