One of the newest twists on modern-day investing is the move away from traditional stocks and bonds. Amid the Ukraine-Russia war, rising inflation in developed economies, and global supply chain problems, many are turning to hard assets like real estate and precious metals to hedge volatility. Why the search for non-traditional opportunities?

The war in Eastern Europe is one of several factors propelling the latest trend, as after-effects of the COVID pandemic continue to wreak havoc on nations like South Africa, China, and others. Besides the war and ongoing pandemic, investors appear to be worried about the fate of many businesses that depend on fiscal health to prosper and deliver profitable opportunities to investors. As 2022 enters its second quarter, uncertainty still rules the markets.

GME Stock Chart on Robinhood App Credit: Tech Daily

For too many working adults, corporate stocks and standard savings accounts are no longer the default place to park private capital resources. While war, worldwide inflation, supply chain problems, and political conflicts work their way into the year’s second quarter, real estate investment trusts (REITs) and gold are among the most popular choices for everyday investors. REITs can offer multiple advantages and the disrupted economy is sending many investors to the real estate sector.

But for these newcomers to the niche, it’s not about purchasing real estate outright. Instead, they’re purchasing shares of numerous properties through REITs. Not only do REITs offer a 20 percent tax benefit on every dollar invested, but they also deliver benefits like long-term property appreciation as well as rental income. For small business entrepreneurs, REITs are an effective way to retain more income and put the money back into their companies. There are those who ask is a rental property qualified business income? The answer is that it usually is. That QBI, qualified business income, status means investors can save when they pay taxes, to the tune of 20 percent of the invested amount.

gold Credit: Jingming Pan

Gold is making a comeback where the COVID pandemic, and now the Russia-Ukraine military conflict, sent the price of gold upward. It’s important for potential investors to note that since March of 2020, the price of the yellow metal has hit historic highs twice and continues to hover between the $1,900 and $2,000 marks since the East European conflict began between Ukraine and Russia. It’s not just price that’s been affected by recent events but volume. Gold buying has been brisk on all the international markets since the beginning of the year, especially since Russian tanks moved into Ukraine in late February.

Investors are still wary of cryptos in 2022. Like gold, cryptocurrency in general, and bitcoin in particular, has reached historic highs since the COVID pandemic began in early 2020. More recently, during the first quarter of 2022, BTC and other major cryptos dropped throughout January but have recovered nearly all that loss in the past two months. Now holding firm at the $46,157 mark as the second quarter of the year begins, bitcoin is likely to have a stellar year if the current round of COVID resurgence news continues and military tensions in Eastern Europe persist. Overall, investors are searching for safe havens and finding them.


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