The investment world is a far different place today than it was in 2008. The banks have stopped lending, the credit rating agencies have tightened their belts, the financial sector is even more highly regulated, and most importantly, the use of technology has begun to disrupt the traditional ways of doing banking business. It is widely understood that mismanagement at the big banks and the financial institutions on Wall Street was one of the main causes of the financial crisis that has affected us all. They made some incredibly poor decisions and showed a level of greed that was unprecedented. In my opinion, with peer to peer lending you can potentially earn a decent return on your money (and completely bypass these institutions).
One of the most gratifying things about p2p lending is that you can know exactly where your money is being invested. You are investing in fellow Americans, most of whom are genuinely trying to get ahead in life. You can read their story and invest in real people. Help people consolidate their debts, start a business, or pay for a wedding. You get to choose who gets your money. By investing in individuals and small businesses, many of whom have been rejected by the banks, you are helping to stimulate the economy. You are creating liquidity in the financial system and providing funding to people who might otherwise not have been able to obtain a loan.
Most financial planners preach the gospel of diversification via Modern Portfolio Theory. The belief is that by holding a broad range of asset classes you can minimize your downside risk. In theory different asset clases should not move up or down at the same time. This is mostly true except in rare cases such as the crisis in 2008, when just about every asset class lost value. Unless you have a crystal ball there is no doubt that it is better to diversify into completely unrelated asset classes and that is what p2p lending provides. It does not move up or down in correlation to any other investment class so it provides true diversification to a traditional investment portfolio.
Further, p2p lending is extremely transparent. Do you have any idea where your money goes when you put it in a CD, savings account or mutual fund? In most cases likely not. But with p2p lending you can see exactly where your money has been invested. Not only that, you can also see how all or any of the loans are doing whether you invested in them or not. Because they have to register with the SEC you can also see the financial health of Lending Club or Prosper by reading their SEC filings.
I could elaborate much further on the merits of this emerging asset class however that is not the purpose of my post. I encourage each and every investor to conduct their own due diligence and simply wanted to highlight a few p2p lending companies worth researching.
Credit Card Debt & Other General Loans:
Lending Club:
https://www.lendingclub.comProsper:
http://www.prosper.comCircleBackLending:
https://www.circlebacklending.comFreedomPlus:
https://www.freedomplus.comStudent Loans:
Sofi:
https://www.sofi.comCommonBond:
https://commonbond.coSmall Business Loans:
Funding Circle:
https://www.fundingcircle.com/us/Quarter Spot:
https://www.quarterspot.comFirst Deed Property Loans:
Realty Mogul:
https://www.realtymogul.comInvestment Companies:
P2P Picks:
https://www.p2p-picks.comPeer Lending Advisors:
http://www.peerlendingadvisors.comLooking Glass Investments:
http://www.lgiresearch.comInterest Radar:
https://www.interestradar.comNickel SteamRoller:
http://www.nickelsteamroller.com/blog/Conferences & Education:
LendIt 2014:
http://www.cvent.com/events/lendit-2014/event-summary-a66f17b04cdb4230a20ef965c1114c1a.aspxFinovate:
http://finovate.com
Comments
“We are witnessing the growth of the non-banking lending market,” Lord Rothschild told the Financial Times. “Following the 2008 crisis many of the banks remain under capitalised,” he said. “In these circumstances alternative forms of credit will be developed on a significant scale. This is happening.”
http://www.ft.com/intl/cms/s/0/2ffbe17e-405f-11e2-8f90-00144feabdc0.html#axzz2oiladmC7
___________________________
I've never tried Lending Club, but I've tried Kiva (a largely EM-focused microlending site, although you don't earn interest, you're just helping people with their little start-up businesses around the world and you can pick who you want to invest in) a few occasions and it went fine. Despite not earning interest, it was an emotionally rewarding experience to help someone on the other side of the world with their little business.
I would not put a great deal into this sort of thing, but I do absolutely think that it is here to stay and will be an increasingly popular asset class (and I do think alternatives to traditional banking will become increasingly common - things like Amex's Bluebird, etc). I've thought about looking at Lending Club, but just haven't gotten around to it.
If you do not understand p2p perhaps you should refrain from comment.
1. P2P lending is a scam
2. This is a mutual fund discussion board
3. Time for you to take your act to another discussion board
Sorry if you feel my posts add no value. I spend much time on my portfolio and am simply trying to articulate my thoughts to hopefully share what I have learned with others. I will excuse myself from this forum as your behavior is not conducive to a constructive discussion.
I thought this was an open medium to exchange ideas and did not realize it was to discuss mutual funds only. There have been several articles posted with no direct link to mutual funds, stocks, etc.
Oh well. Happy Holidays to all
You noted: "I thought this was an open medium to exchange ideas and did not realize it was to discuss mutual funds only."
You are correct with this statement.
I will comment that this particular subject matter should be posted in the "off-topic" category. You may perform this with the initial category posting; but you may also keep this thread in place and change the category to "off-topic". At your first posting of this thread, select "edit". Just below the subject line you will find a dropdown menu for category. Select this menu and then choose "off-topic". Then select the "save comment" at the bottom, right of your post. The thread will move intact to the "off-topic" area.
As to "OT" postings that are not directly related to a mutual fund; one of the most dynamic events that would have to be "OT", but has had the most profound effect on "mutual fund" investments over the past 5 years is the Federal Reserve. There would not be a problem with such a posting, but I would personally place such a thread in the "OT" category.
Ted places postings into the "Fund" category that should be "OT". I don't really care one way or another; as the subject line is what I view for an idea of the content; and whether I choose to read the post/link or not.
As noted previously, Ted is a member of this forum; not unlike the majority (99.99%) of those who participate and/or read postings here. He has no special privilege or rights; but he is obviously allowed to express his opinion.
One of his attributes, at times; we have come to know is:
adjective: belligerent
synonyms: hostile, aggressive, threatening, antagonistic, warlike, warmongering, hawkish, pugnacious, bellicose, truculent, confrontational, contentious, militant, combative;
You must move past this circumstance, maintain your high ground and continue to participate and learn; at the most knowledgeable and civil discussion board regarding mutual funds and related topics, to be found on the internet. MFO is a community (a feeling of fellowship with others, as a result of sharing common attitudes, interests, and goals).
Respectfully,
Catch
No matter which of you is "right", there is little call for this incivility.
Regards,
Ted
I am not ungrateful. I appreciate your efforts digging through news items and posting such, which you feel are of value to this investing community. Everyone learns something from all of the postings and discussions here. Thank you again for your efforts.
You must admit though, that you get a little "huffy" from time to time when expressing your opinions. The implication, as noted from a few members here; over the past few days, is that your comments implied the ability to "close" a discussion. That notion has been put into its proper place.
Whether anyone agrees as to the subject matter of a post; MFO is both a mutual fund and open (off-topic) discussion area. I would not, however; state to a member here, that they "take their act somewhere else" to post; as you noted to Hrux above.
You could have expressed your displeasure with the subject matter using other words.
Past this, I will defend your right; no less than others here, to post relative subject matter and express their opinions.
No one reading this exchange of thoughts regarding this topic should imply anything more than a civil discussion of circumstances about decorum; at least from my opinion position.
I will note again, that those who read and post here; especially to all of the newer members, that one will not find a better discussion board regarding mutual funds and related subject matter anywhere on the internet.
Everyone post and link your subject matter and questions. I learn something new all of the time about investing; and what a pleasure it is to continue to learn.
Respectfully,
Catch
Happy New Year,
Ted
https://www.google.com/search?q=congratulations&tbm=isch&source=iu&imgil=TMzDH2lAPY7aHM%3A%3Bhttps%3A%2F%2Fencrypted-tbn3.gstatic.com%2Fimages%3Fq%3Dtbn%3AANd9GcR62t0Ix5Vj-riVwauYI0boZyElTGu0mQFaWiM3nzz0l-eHstgk%3B2324%3B1280%3BUYpj9fysG3vUqM%3Bhttp%253A%252F%252Fwww.spanishdict.com%252Fanswers%252F251964%252Frodneyp-hastiene-10kfelicidadescongratulations&sa=X&ei=XOi-UqT6DuO52QXJz4BA&ved=0CEgQ9QEwBA&biw=1600&bih=731#facrc=_&imgdii=_&imgrc=TMzDH2lAPY7aHM:;UYpj9fysG3vUqM;http%3A%2F%2Fwww.lexjustis.com%2Fwp%2Fwp-content%2Fuploads%2F2013%2F03%2Fcongratulations.png;http%3A%2F%2Fwww.spanishdict.com%2Fanswers%2F251964%2Frodneyp-hastiene-10kfelicidadescongratulations;2324;1280
Tip