Everyone’s searching for ways to earn higher returns right now.
Stocks? The market’s too high already, and too volatile.
Bonds? After inflation, yields are negative.
Real estate? With more and more families and businesses struggling to pay rent, profitable opportunities are scarce.
But now JPMorgan is focusing on a new asset class, and CNBC says it offers “higher returns.”
So today, I’ll tell you what it is — and then I’ll show you how to get started yourself.
The Next Frontier
Despite the terrifying volatility of stocks and the dark clouds of economic uncertainty, one bright spot continues to shine.
The private market.
Year after year, decade after decade, regardless of what’s happening in the world, the private market continues to help turn small starting stakes into millions of dollars.
That helps explain why JPMorgan is finally jumping in…
As senior executive Chris Berthe just revealed in an interview with CNBC, “Many of our clients are looking at this as the next frontier.”
As he said, “What do you do when markets get so high?” Simple, he said: you should get involved in private companies — companies “at earlier stages of their lifecycle.”
And this is the year that you should get involved with private companies, too.
Everyone Is Jumping In…
Historically, only venture capitalists (“VCs”) invested in the private markets.
These professional investors would invest in early-stage tech and biotech companies like Oracle or Biogen years before they went public…
And then cash out for millions or billions when these startups IPO’d or were acquired.
But as the profitability of early-stage investing became widely evident, other types of investors started to jump in, too.
- Mutual fund giant Fidelity (which traditionally, only invested in public companies) started investing in private startups like Uber and Pinterest.
- Tiger Global, one of the most prominent hedge funds in the world, pulled back on its stock market investments so it could allocate more capital to the private markets. According to The Financial Times, it’s invested in about 230 startups including Warby Parker, and before they went public, Peloton and Spotify.
- The world’s most successful athletes and entertainers are jumping in, too. For example, U2's front man Bono invested in Facebook when it was still a tiny startup. Ashton Kutcher invested in Airbnb, Spotify and Uber just when they were getting started. And Jay-Z invested in trading app Robinhood.
Now JPMorgan is jumping in.
And you should jump in, too…
Maximize Your Returns with Minimal Investment
Perhaps surprisingly, it doesn’t take much capital to get started.
For individual investors like you, just a few hundred dollars here and there could turn into a seven-figure nest egg.
The “secret” here is remarkably simple: historically, early-stage private investing has been the most profitable long-term asset class.
On average, for the past 20 years, these investments have returned roughly 55% per year. And at 55% per year, in just 20 years, you could turn $250 into more than $1.6 million.
So even if you took just a tiny piece of your nest egg and put it into the private markets, you could multiply your total returns many times over.
As CNBC put it so well: “Get in sooner, that’s one way of generating those returns.”
Now It’s Your Turn
For the past 85 years or so, the U.S. government legally prohibited all but the wealthiest citizens from investing in startups.
But recently, because of a new set of laws called The JOBS Act, now anyone can invest in these young, private companies…
And anyone can put themselves in position to make market-beating returns.
This is why, about six years ago, Wayne and I launched Crowdability: our mission is to help individual investors like you make sense of (and profit from) this newly available market.
Here are two easy and free ways to get started:
First, take a look at our weekly “Deals” email. We send this out every Monday at 11am EST, and it contains a handful of new startup deals for you to explore.
Second, check out our free white papers like “Tips from the Pros.” These easy-to-read reports will teach you how to separate the good deals from the bad.
As Hugh Son from CNBC reported, the private market offers “a competitive advantage.”
Take advantage of it!