Unveiling Opportunities: Key Investment Trends Shaping 2024

As global markets face economic uncertainties in 2024, prudent investors are setting their sights on alternative assets to navigate change while diversifying holdings for the future. Investments beyond classic stocks and bonds add new dimensions to portfolios with the potential to enhance overall returns through greater diversity. Now more than ever, it pays to explore emergent opportunities.

Alternative assets under consideration range widely from real estate to private equity buys, digital currencies, niche infrastructure plays, tax arbitrage vehicles, and more. Each area demands dedicated evaluation based on risk appetites and growth outlooks across long-term horizons. Industry insiders provide invaluable first-hand intelligence on key alternative asset classes commanding attention today. 

From backing startups to subdivided backyards funding granny flats, the alternative investing landscape of 2024 promises media-defying innovation alongside stalwart performers.

Real estate

Real estate retains its magnetism for investors seeking portfolio diversification with passive income potential. Farmland emerges as an especially compelling option, delivering resilience through crop and revenue diversification along with societal necessity. Vertical farming adds stability via climate and location-agnostic operations. 

“Investing in income-producing farms stands out in 2024 as agriculture’s consistent returns meet sustainable practices,” confirms Dutch Mendenhall, Co-Founder of RADD America. Mendenhall’s regenerative farmland investment company leads through technological innovation like AI analytics to boost productivity and profits.

Residential real estate also promises new income streams through backyard development. New laws enabling homeowners to subdivide lots provide ground-floor chances to capitalize on untapped land value. Matt Lucido, CEO and co-founder of Yardsworth, sees immense potential in driving this burgeoning market. “In 2024,” he says, “California homeowners will discover their backyards are a financial goldmine with six-figure payouts funding granny flats and ADUs.” This not only unlocks wealth but also spurs affordable housing — a socioeconomic win-win.

With cautious optimism around cooling inflation, analysts anticipate falling mortgage rates by mid-2024. Investors can exploit market dynamics through alternative funding models like Opportunity Zone tax incentives that support projects with more upfront equity and delayed debt. “This strategy aligns with the expected rate trajectory,” explains Opportunity Zone advisor at OZPros, Ashley Tison, whose client is developing a mixed-use campus in a New Jersey Opportunity Zone this way to revitalize the community despite today’s high rates.

However, specialized knowledge is non-negotiable in this complex arena. For industry pioneer Neal Feinberg, founder of Florida Indoor Racquet Club, his decade of patience will pay off when his once dormant Florida land turns a dream into a reality after he opens his state-of-the-art tennis facility in 2025.

That’s why expert guides like Steve Davis, CEO of Total Wealth Academy, focus on educating aspiring investors first before risking capital in this high-upside but high-stakes sector. Today’s side hustle scene offers no shortage of gig work, but proven wealth builders point to real estate. “90% of all millionaires used real estate investing to gain financial freedom,” Davis highlights. 

Cryptocurrency

Cryptocurrency and blockchain technology continue capturing investor attention and wallet share thanks to staggering growth despite persistent volatility. True crypto believers see staying power in the decentralized financial systems and token economy crypto enables without traditional financial middlemen.

“A recent Deloitte study shows that 75% of retailers plan to accept crypto payments within two years,” notes Shane Rodgers, Co-Founder and CEO of PDX Global Ltd. Rodgers sees particular potential in crypto companies allowing retail and service transactions conducted in virtual currencies.

In a recent article, Peter Eberle, president of Castle Funds, has also remarked that he sees “multiple tailwinds that could propel BTC to new all-time highs in 2024.” He said that investors are currently “enjoying a nearly risk-free 5% return in money market accounts…As these interest rates decline investors will seek out riskier assets with higher return potential,” which he says “will include BTC.”

“Anyone who wants to start making money online, start making better investments, or just wants 2024 to be their year needs to start using Bitcoin,” adds Evander Smart, founder of BitcoinUniversity.org. “Doing so ensures you take economic power out of debt-based, depreciating instruments with a shaky future and instead invest in a scarce, secure digital asset with a bright future. If you don’t have many resources, maximize the resources you do, and put them into the best investments possible — that’s what successful people do. Nothing has the ROI of Bitcoin. Last year, it rose in value by over 150%, and it will do far better than that in 2024.”

Interoperability protocols driving seamless navigation across blockchains also intrigue investors like Rodgers as the crypto ecosystem matures. These critical bridges between networks power essential cross-chain transactions and synergies. Meanwhile, the surge in crypto “stablecoins” pegged to fiat currency reduces volatility exposure, and investors witness familiar institutions like Fidelity and BlackRock launching crypto funds and services for wealth managers amid swelling public interest.

Buyouts

For high-net-worth and accredited investors, private capital introduces portfolio diversification beyond liquid public market ties. Private equity funds take controlling ownership stakes in startups and small companies, shaping them for eventual public listing or acquisition, while investors gain exposure to early venture growth.

Private credit funds provide flexible corporate financing solutions as an alternative to conventional bank loans with offerings ranging from venture debt supporting startups to capital investment for acquisitions, restructuring, or operations. These diversified private credit portfolios deliver yield while contributing to GDP growth.

Private real estate funds allow pooled investment in larger property assets like hotels, resorts, commercial offices, and multi-family housing. By tapping institutional manager expertise, private RE vehicles access deals with favorable risk-return profiles beyond listed REITs. 

“These private capital avenues offer higher than market returns over long holding periods despite liquidity limitations,” confirms author and fund investor Steven Pivnik. Investment timeline targets of 2-5 or more years cater to patient capital seeking amplification beyond volatile public markets.

Overall, 2024 looks to be a prime year for alternative investment avenues. By paying close attention to market conditions, investors can potentially add significant contributions to their portfolios with the options laid out here, bringing them one step closer to achieving their financial goals by the year’s end.

This post was authored by an external contributor and does not represent Benzinga’s opinions and has not been edited for content. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice. Benzinga does not make any recommendation to buy or sell any security or any representation about the financial condition of any company.