Why Savvy Investors Are Turning to Alternative Investments for Stability and Returns

If you’re not familiar with the term alternative investments, your portfolio may be missing some important investment tools available. Discerning investors are increasingly directing their focus toward including alternative investments in their portfolios as a strategic move to go beyond traditional stock and bond asset classes. These alternative asset categories, spanning real estate, private equity, private debt, agriculture, hedge funds, and even collectibles, have long been the bedrock for affluent families’ wealth-building strategies and pension plan companies’ investment approaches.

At Veritable Wealth, we advise Clients to include alternative investments for several compelling reasons:

1. Return: Alternative investments offer the potential for robust returns that often outpace those of conventional assets. Their non-correlation with traditional markets provides a valuable diversification benefit. 

2. Diversification: A genuinely diversified portfolio extends beyond only a conventional mix of stocks, mutual funds, ETFs, and bonds. Alternative investments introduce a layer of diversification that enhances risk-adjusted returns.

3. Stability: Amid market volatility, alternative investments can provide stability. Their performance tends to be less influenced by short-term market fluctuations, contributing to a smoother overall portfolio experience.

Let’s delve into some specific examples:

1. Commercial Real Estate: Consider the niche market of university student housing within the commercial real estate sector. This segment offers stability and lucrative returns. The perpetual demand for student accommodation, coupled with parental financial support, ensures a steady income stream. Notably, students cannot graduate without settling their residence bills.

2. Agriculture: By partnering with innovative farming operations, we tap into cutting-edge technologies that significantly boost agricultural production. These investments align with sustainability goals while enhancing profitability.

3. Private Debt: In today’s economic climate, private debt is an attractive asset class. It bridges the gap left by traditional lenders, providing crucial capital to businesses to ignite growth.

At Veritable Wealth Advisory, we confidently approach these alternative investment strategies backed by proven results. Our commitment to Clients lies in optimizing wealth preservation and growth through a diversified and expertly curated portfolio.