A good investment is not easy to find, and sometimes, investors have to spend time looking for it. Still, there are different opportunities, and one of them is alternative lending. Surely, this market behaves like an underdog in many developed countries, but some regions prove it to be a diamond in the rough. Southeast Asia turned out to be one of the most outstanding among such regions. While the growth potential of its mostly agricultural countries is impressive, there are a few more things to consider.
Chasing two rabbits you will catch neither, but in most cases, this principle cannot be applied to investing. A chosen project can be highly promising, but a failure can lead to loss of investments. Although the asset diversification is common knowledge for investors, some still ignore it. But how wrong they are!
The P2P lending market is growing rapidly: according to forecasts, its annual volumes can reach $898 billion by 2024. Although the low base effect is gradually weakening, and the average global growth rate has reduced from 250% to 30–50% a year, the market is still far from being saturated. Today, we will look into the development of P2P lending and the reasons for such a big interest of borrowers and investors in it.
The last decade has become an era of rapid development of financial technologies. According to CB Insights, in 2018, fintech companies attracted $39.57 billion from venture funds, which is 2.2 times more than in the previous year. The total turnover of two leading payment systems, PayPal and Ant Financial has steadily exceeded $100 billion in recent years. Even the ultraconservative investor Warren Buffett admitted that it was a mistake to ignore the opportunities of investing in fintech.
Choosing an investment strategy is one of the most frequently discussed topics in the FIRE communities. Graham’s value investing, Markowitz’s portfolio theory and venture capital policy — all these can be puzzling. But such a variety of methods is used by professional investors, who set different goals — from short-term speculative investments to the acquisition of controlling stake.
Lately, the economic principles of FIRE have been covered by many significant media like Forbes and others. Blogs of the most well-known representatives of the movement have hundreds of thousands of subscribers. As a result, the FIRE lifestyle has become a part of a fashion trend, along with downshifting and nature protection. But FIRE is not a strategy to fight against consumer society.
The movement “Financial Independence and Early Retirement” is becoming more and more popular worldwide. The idea to generate independent passive income, which allows to retire in the mid of working age, has always existed. FIRE in its current form appeared in the late 1980s-early 1990s.
There is a steady growth in peer-to-peer lending. Ten years ago, there were only few tech companies with investors who had relevant experience, but the situation has changed. The leading p2p platforms demonstrated their stability in crisis times, added new products and are ready to collaborate with the government authorities. Robo.cash studied the changes on the market and existing expectations of investors.
2018 has become quite eventful for the development of financial technologies. We have pointed out several trends of the outgoing year, which will have a significant impact on the world market in the foreseeable future.
Today more and more people understand the importance of financial security and try to follow major investment principles, chiefly showing interest in short-term, cash investments and real estate. This article will briefly describe the most effective investment strategies.