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8 investing ideas that avoid the stock market

This article is by staff writer Jeff Rose, CFP. Be sure to check Jeff's latest project Operation: #investNOW where he's encouraging 1 million to start investing in themselves.

Investing in the stock market requires resolve and a long-term vision. In fact, looking back over the last 14 years or so -- a relatively short period of time -- the stock market tested the resolve of many. The S&P 500 shed 46 percent from August 25, 2000, to October 4, 2002. Just five years later, during the housing bust, the S&P 500 lost 56 percent of its value from October 12, 2007, to March 6, 2009.

Even if you LOVE to invest in the stock market, the last 14 years might shake your confidence. I always thought stock investments were supposed to gain about 9 percent per year. What happened? And what other options are out there? Do you have to stick to stock mutual funds and ETFs? Not quite.

Here are eight investing ideas that avoid the stock market.

1. Precious Metals

During the Great Recession, precious metal commodities like gold and silver were all the rage. As the stock market lost more than 50 percent of its value, gold and silver started a monumental rise in price. Gold went from around $600 per ounce in 2007 to peak at $1,900 per ounce in 2011.

The prices of the most popular commodities have since fallen from their peak, but had you invested in precious metals for that period of time (and others like it in history), you would have netted a healthy profit for your portfolio.

Relying solely on precious metals for your portfolio is extremely risky, though, and I wouldn't suggest it. However, commodities do tend to act in an opposite manner to the stock market, and using precious metals as a hedge against volatility can be a great strategy.

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Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

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