The FTSE 100 fell by as much as 1.9%, it was reported on Thursday, reaching its lowest point since April this year. The drop’s been chalked up to activity in the US. Increasing interest rates, growing bond yields and concerns about Donald Trump’s trade policies have seen investors shy away away from traditionally popular ‘growth stocks’, such as Facebook or Amazon, and move instead towards more low risk investments.
The rumble’s been felt across the globe, with the Dow Jones, S&P 500 and Nasdaq all falling.
For most stock market investors, volatility shouldn’t come as a surprise. However, as the US continues to rock the boat, and the date of Britain’s exit from the European Union gets ever nearer, it could be that other investment options – with less of the ups and downs – start to get more popular.
Peer-to-peer lending is one example. It’s not directly tied to the stock market, meaning it could be an effective way to diversify a portfolio that’s over-concentrated in equities – or be an alternative for those wanting to avoid stock market investing altogether. Of course remember, though, as with any investment, your money will still be at risk. And be aware that peer-to-peer lending is not covered by the Financial Services Compensation Scheme.
If you’re worried about the volatility of stocks and shares and what might be the best investment for you, here are 7 alternatives to investing in the stock market.