POSTS FROM PAST WEEK
On Tuesday we looked at the concept of diversification. We discussed how data has shown that in periods of financial crisis correlations across traditional assets like stocks and bonds can rise. This phenomenon destabilizes asset allocation. The solution is to include alternative investments in a portfolio. Marketplace lending is one such example.
National Real Estate Investor posted an article asking if marketplace lending lending is safer than the stock market.
SeekingAlpha offered an insightful look into the explosive growth behind marketplace lending.
Peer-to-Peer Finance News discussed recent moves from Basset & Gold to offer investors a four-year marketplace lending bond.
Bloomberg Markets looked at a Quebec hedge fund which is aiming to outperform passive investing strategies by seeking more aggressive returns from non-traditional asset classes in the market.
Business Insider offered analytics examining the growth of alternative lending from 2014 to 2016.
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We took a closer look at direct online lending, marketplace lending and crowdfunding. Each model has unique characteristics. The best way for investors to choose which is right for them, is to consider their risk tolerance and their goal return rates.