TINA? Or is there an alternative

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There’s an acronym: TINA. Which stands for “There is No Alternative” referring to the lack of alternatives to just being fully invested in the stock market due to poor performances elsewhere.

I’m looking at my overweight positing in stocks and wondering what alternatives I have to diversify.

  • CHF cash. I guess OK to park temporarily, but little/no return and possible risk of loss in case of bank failures
  • CHF bonds. similar to cash
  • Foreign currency/bonds either have a combination of above risk and FX risk on top
  • Paying down mortgage. Maybe a last resort, you get 1%-1.5% return, but end up tying up capital in a single illiquid asset
  • Gold was a good contender any may still be in the long term, but price has now run up and near term headwinds as markets weigh up Fed raising instead of cutting
  • Other commodities?
  • Real estate, I don’t want to allocate any more to
  • Bitcoin/PE/P2P/handbags/art/wine/watches - I’m not interested in these
  • Pillar 2/3a - already filled

Anything else I missed?

What assets do you own other than stocks, real estate, bitcoin?

EDIT:

Good point by yetanothername:

  • Spend on energy saving equipment for the home. I guess more generally any other capital expenditure that might save money: insulation, solar panels, LED bulbs
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Sorry I have nothing to add really, it just dawned on me that a few years ago one would have added “P2P lending” as an option, but that seems to be gone from the collective mind. I never got into it, maybe it was a good "“non-choice”?

Edit: actually you mentioned it, grouped with Bitcoin. Nevermind.

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Private businesses and/or startup equity

Helps if you are entrepreneurial

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I added to the list after you mentioned it :smiley:

I was actually very anti-P2P. I’m curious as to those who invested in it whether they made any money in the end?

Yes. I put this as PE. Too illiquid for my liking but a good option for some.

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A member of my family uses P2P loans for a large part of his portfolio and is happy enough with the returns. He earns and invests in euros, and the options for P2P lending across EU countries are more established extensive than in Switzerland, and there is some cross-border regulation for debt collection. His returns don’t beat the stock market, per se, but are good enough to make me consider P2P lending an alternative.

I think your list of asset classes does a pretty good job of covering current passive investment options.

That leaves active investment (e.g. starting a business).

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I invested in a P2P loan (24-30 months duration), got a very decent return.
The 24-months for reimbursement were extended to 30 (as per contract).

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There are always (other) options, each with their unique risk profile and pros and cons:

  • Daytrading instead of investing
  • Casinos proper (Lotto, prediction markets, sports betting)
  • Founding your own cult or religion
  • Starting a criminal enterprise (insider trading, money laundering, sanction evading, smuggling, private loan shark, art theft, pet ransoming, hacking, drugs, special services, opening a bank)
  • Self-prostitution (better clear this with your current pimp-enterprise!)
  • Soldier of fortune or military services
  • Elevating your consciousness to beyond caring for worldly matters

Some of these options may even be combined (but not all). I would rule out clearly amoral choices, like selling 3a insurances.

Edit: more choices!

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hedge funds

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I use following for diversification

RE Funds , Bond Funds , CHF Cash and Gold

Your list was already exhaustive. I suggest TL decide on how much equity allocation you want and then within equity try to optimize the mix of regions.

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What was the yield per annum?

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These days, EVERYONE knows that you just need to hold stocks for 5+ years, and you will for sure enjoy a positive return. There was a time, eveyone talked like this about BTC… if you ask me, the alternative is quite simple: Hold Cash and enjoy re-balancing premia. Whether you invest in case, or reduce mortgage (kind of the same)… doesn’t matter, but just hold some cash.

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Art + a several collecting areas (on in particular of substantial value). Made acquisitions in both areas for pleasure but also good to know there is appreciation rather than depreciation.

One idea might be buying land as a long term investment.

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Farmland and forestry would be an area I should look at. I’d looked at forestry previously, but valuations were not attractive.

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Yeah. With a lack of good alternatives, I think I will end up having a large slice of cash instead.

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2023, 6%

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I feel like we will have diminishing returns going forward due to that. Everyone, their moms and dogs are buying stocks. Every dip is relentlessly bought up. Valuations are also raised across the board and seem to stay elevated, because it kinda pushes the price level up a notch I think.

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I was considering buying an appartment in a foreign city with long term renters in it (from 1980s). Low purchase price, low rent, you let them sit until they pass away and then you can fix the place up and stay there or rent it out at MUCH higher rates.

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Didn’t imply this under collections, but

  • watches
  • jewellery
  • etc.
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TIPS etc. I.e. inflation linked bonds

Commodities, yes. Depends on structure

BTW when you buy futures, you don’t have (much) currency exposure.

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'“Stocks” as an asset allocation might look a bit broad from where you stand. What about undervalued makets and industries? Some good representation of real assets might be in order: stocks for farmland, food production, mining. Or small bets on wars in Ukraine and Iran going to end and Cuba coming again online. Emerging markets in Asia, South Amerika and Africa. Cash, of course, is always good as dry powder.

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