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Feb 15, 2019

Why Every Portfolio Needs Alternative Investments Now

Why Every Portfolio Needs Alternative Investments Now


Alternative investments are now essential for portfolio diversification.


Investors' overconfidence from a sustained bull market in equities has left many unprepared for the resurgence of market volatility and geopolitical uncertainties, risking significant portfolio losses. This has been exacerbated by global economic stresses such as escalating debts and deteriorating credit quality, underscoring the need for enhanced caution in investment strategies.


The traditional 60/40 portfolio allocation of equities to fixed income has become outdated due to changes in market dynamics post-2008 financial crisis, such as persistently low interest rates that have led to higher corporate indebtedness. This has not only increased financial risks but also strengthened the correlation between stocks and bonds, diminishing their effectiveness as mutual diversified.


Alternatives have moved from the periphery just a couple of decades ago, to a position of equal importance with Traditional Investments within every portfolio. This is the new and foreseeable normal.

Access the entire article to better understand the risks and opportunities in today's investment landscape. Explore the pivotal role of alternative investments, and discover strategies to safeguard and grow your portfolio in uncertain times.



If you do not have a work email address, please email us at info@primealpha.com and we can email you the report directly.



Table of Contents

  • Significant, Undervalued Risk

  • What Are Alternative Investments?

  • Why Portfolios Need Alternative Investments Now

  • More Accessible and Relevant Than Ever




Thanks to our Contributor


Highmore


Highmore is an alternative asset management firm with an opportunistic approach focused on growth stage and capacity-controlled investments in both public and private markets.



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