YieldStreet Investors Are Learning the Meaning of High Risk
Alternative investments for the masses are not always a good thing.
The online investment platform YieldStreet came on the scene in 2015 with a bold proposition: It would allow individual investors to make the kind of unusual, potentially high-yielding investments normally reserved for institutions and the very rich. These alternative assets include pieces of investments in real estate, art, and even ships. Although the company caters only to accredited investors—those who earn more than $200,000 annually or have a net worth of at least $1 million—that’s a bar many affluent professionals can clear. Investors have plowed around $1 billion into deals through YieldStreet.
The company warns on its site that its investments carry higher risk than normal stocks or bonds. But recently some YieldStreet investors have found out how wild those risks can be.