During the economic recession of September and October 2008, most investors lost a lot of money due to a huge banking crisis that caused the stock market to collapse. For those with the most money in the stock market, the collapse has become a catastrophic nightmare. In many cases, people have lost everything, not only in the stock market, but also in most other investments.
In 2012, financial investigator Robert Cancellaro published a book challenging what most investors would say, “No.” “Bad idea”, “It won’t work”. Alternative investments: making money outside the stock market introduces a revolutionary idea that “collections” are better investments than traditional investments, such as the stock market. Collectibles have no financial connection to the stock market, but have the financial power to make money.
Cancellaro is investigating seven categories of collectibles that have historically increased in value. The following categories are known as tangible assets – items that you can own and certainly have on autographs, postage stamps, precious metals and coins, comic books, sports books and investment quality wine. Why did the author choose these “inappropriate” collections as investments? Answer: They consistently outperformed the S&P 500 by a large margin.
All seven categories include their own lists of specific items that have steadily grown in value over their lifetime and have consistently attracted those who have purchased them. However, before you buy something, it is important to learn as much as possible about collecting. The Internet has an endless number of resources; the most important are included in Cancellaro’s book. In addition to the Internet, you can visit and search libraries or bookstores for books that contain general information and pricing guides.
The keys that drive collectors’ values are based on the fact that they are tangible. In other words, it can be achieved by making it part of the law of low supply and high demand. So the items on Cancellaro’s list are hard to find, but they are popular and many people want them, which increases their value. For some collectibles, their conditions are extremely important; the better the condition, the more valuable it could be. Items on Cancellaro’s lists are expensive. If you want the item, you may have to pay a lot, but its value will most likely increase over time. Above all, time is your most important ally, because the more you keep it, the more value it adds to your collection. So it is important to protect your collection safely from items and stay in the same condition in which you bought it.
Autographs, postage stamps, precious metals and coins, comic books, sports books and quality investment wine can become part of your investment strategy. You don’t always have to trust the stock market; it can rise as much as it can go down, while the values of collectors have remained more stable. Obtaining information is a necessity for buying reliable collector’s items that retain their value. Not only is it a smart and intelligent move now, but it will also protect you financially against the next stock market catastrophe or the global financial crisis. Cancellaro also lists specific recommendations on what to buy in all seven categories. When the economy sinks next time, don’t waste money on the stock market. So choose carefully, buy and keep an alternative investment.