Earn High Yields Without the Stress of Market Volatility
Key Takeaways
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Market volatility is influenced by several factors, including global events and economic turns.
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High-yield, fixed-rate investments aren't subject to the whims of a volatile market and offer consistent and predictable returns to investors.
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Diversifying with Short Notes adds a layer of protection to a portfolio.
When considering where to invest money for good returns, many discussions revolve around stocks and bonds. However, these traditional investments are significantly influenced by market volatility. Political, economic, and even industry factors can determine how prices fluctuate.
High-yield investments, offering stability and greater returns, allow investors to diversify their portfolios. We'll discuss market volatility, consider fixed-rate investments and their benefits, and then look at Short Notes—short-term, high-yield investments that aren't subject to the whims of a volatile market.
Challenges of Stock Market Volatility
The market can experience significantly increased volatility during times of fear and uncertainty, and with it comes big up-or-down price swings. The stock market becomes volatile when its rises and falls are more than 1%. Volatility is a statistical measurement, and the higher the volatility, the riskier the security.
There are several reasons for stock market volatility, and these include:
- Economic factors such as inflation, recessions, and unemployment.
- Global events like wars, terrorist attacks, oil shortages, and natural disasters.
- Pandemics such as COVID-19 caused a period of time when the market experienced high volatility.
Volatile markets often see significant increases in trading activities and price fluctuations as buying and selling opportunities are created. This can present challenges, where orders are delayed or executed at a different price than what was expected. As you can imagine, it can be chaotic, and electronic orders sometimes slow down, or it's difficult to reach an investment professional. A volatile market also increases risk for the investor.
What Are Fixed Rate Investments?
If you're wondering what to invest in right now, consider fixed-rate investments. They generate consistent, predictable income and help preserve capital. They also help diversify a portfolio and offer potential tax benefits.
Traditional fixed-rate investments include Treasury, corporate, and municipal bonds. Alternatives to these traditional routes are mutual funds, Short Notes, and ETFs (Exchange-Traded Funds).
While fixed-income investments are generally considered less risky, it's essential to understand that this doesn't mean there isn't any risk at all. They can still be affected by market conditions, inflation, or interest rates. Investing involves risk; a wise investor does their research and takes steps to mitigate it.
Benefits of High-Yield, Fixed-Rate Investments
The goals of a high-yield investment are higher returns than traditional fixed-income securities like bonds or savings accounts, as well as capital preservation. Although high-yield investing carries more risk than traditional fixed-income assets, it also helps to diversify a portfolio.
High-yield investments also offer:
- Stability and predictability - The fixed-rate returns aren't affected by market swings.
- Passive income opportunities - Monthly payouts mean that cash flow is reliable.
- Accessibility - Several fixed-rate, high-yield investments have good accessibility for the average investor. For example, Short Notes require lower initial capital and make investing in real estate easier than traditional means.
- Diversification - Spreading your money across different asset classes provides a layer of protection so that when one class is not performing well, the losses are mitigated by the gains in the others.
Why Choose Short Notes?
Think of Short Notes like a mutual fund. You select your Short Note, fund the investment, and enjoy monthly returns. Meanwhile, on the backend, Connect Invest manages your investment funds and utilizes them to fund first-position, collateral-backed active real estate developments across the US. As borrowers make interest payments back to Connect Invest, our team redistributes those interest payments back to our investors in the form of fixed-rate dividends.
At Connect Invest, your funds are spread across a diverse, extensive portfolio of first-position real estate loans - a different model from investing directly in real estate development through strategies like trust deed investing, where you are directly tied to only a single loan per investment.
Why do first-position, collateral-backed loans matter? Connect Invest utilizes investor funds through Short Notes exclusively for first-position loans because our loan originator and servicer, Ignite Funding, retains all legal rights over the loans. In the unusual case of a default, our close partner has the right to foreclose the property to recoup investor funds. Basically, our loan originator is first in line to recoup as much of their loan as possible before any other creditors can get a piece of the pie.
Connect Invest's unique model provides investors with fixed-rate, monthly interest payments with returns of up to 9% annualized. This unique offering is available to both accredited and non-accredited investors with short investment terms ranging from 6 to 24 months, and a low minimum of $500 to invest.
The Short Note Portfolio's success is significant and continues to grow. The professionally vetted residential and commercial loans we invest into span acquisition, development, and construction phases across over 55+ cities in 14 states.
With a company mission of streamlining private real estate investing and making it accessible for all, our model has allowed for investors around the US to add real estate development to their investment portfolio with just the tap of a few buttons. Our investors have praised Short Notes - listen to their success stories here.
Getting Started With High-Yield, Fixed-Rate Short Notes
Our simple and streamlined onboarding process makes it easy for investors to get started with Short Notes. Open an account, fund your Connect Invest wallet with cash or IRA accounts, choose the real estate projects, and begin earning passive income.
Investors are welcome to sign up anytime for our webinar, which will discuss Short Notes and how short-term, high-yield investments work in greater detail. Our team is also happy to answer any questions that you may have.
Closing Words
High-yield, fixed-rate investments, particularly alternative ones, remain a good option for investors. They offer high returns and tend to remain stable when the market is battered by volatility. These types of investments help to protect a financial portfolio through diversification and grow wealth with predictable returns.
Short Notes remain one of the best short-term investments and are an accessible avenue for experienced and beginner investors alike to invest in real estate without the burden of direct ownership.