Investment Experiments

I will be dedicating a maximum of $50,000 to investment experiments within the Alternatives asset class. The purpose of these experiments are to evaluate new technologies that offer automated investing or high yields. I’ll review their products before I include the passive income to my Cash Flow Investing Portfolio. Each experiments will use their claims or expected returns as a benchmark to monitor against my portfolio performance. I’ll be running these experiments over an extended period of time to measure in a cyclical market under various stresses in the economy.

Current Experiments

♦ RealtyShares: a real estate crowdfunding platform that allows investors to enter into debt or equity and commercial or residential investments. RealtyShares claim to have high standards for funding project with a more diversified way to invest in real estate across the country. However, their performance statistics do not include substance. For instance no data on investment defaults. Read about my strategy and follow the experiment here.

♦ LendingClub: a marketplace connecting borrowers with investors, where investors earn risk-adjusted returns by investing in a portfolio of loans. LendingClub claims my expected returns will be roughly 5.98% as long as I diversify with at least 100 notes. However, there is not much data, for instance, on how these notes will perform when unemployment rates increase. Read about my strategy and follow the experiment here.

♦ PeerStreet: a real estate crowdfunding platform. They claim “PeerStreet’s investments have similar yields to LendingClub, but are backed by real estate and carry very attractive loan-to-value ratios. Simply a smarter way to invest.” I’ll be running an experiment alongside LendingClub and RealtyShares to compare yeilds and risk. Read about my strategy and follow the experiment the experiment here.

♦ Wealthfront (pending review): A full service robo-advisor investing platform using algorithms and automation technology to manage investment portfolios. They make recommendations from how much money to invest to the type of account that’s right for you. I am mainly curious how Wealthfront performs against actively managed funds in down market and against my existing ETFs.

Note: I have no affiliation with any of the products on this page and do not benefit financially if you invest with them. This page and all others on the site are intended for informational purposes only.

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