Consider the Alternatives

John Lynch, Chief Investment Officer

Consider the Alternatives

Consider the Alternatives: Diversifying Your Portfolio With Non-Traditional Investments

In an increasingly volatile environment, incorporating assets not correlated to the fluctuations of the traditional markets – alternative assets such as private equity, private credit, real estate and hedge funds – could benefit diversified portfolios with opportunities for growth, income, and risk mitigation.

Long a staple of institutional investors such as pensions and endowments, alternative investments are providing options for high-net-worth investors beyond a traditional, 60:40 equity/bond portfolio. Looking outside this traditional split is important as inflation persists, market interest rates rise, and the Federal Reserve takes a more aggressive approach in the months and quarters ahead.

We’re experiencing interesting times for investors. But it’s not just a short-term situation. The fact is investors can never know if or when the market is going to zig… or zag, nor should they try to predict the fluctuations. Rather, considering the alternatives, so to speak, can be about being prepared. Comerica Wealth Management believes market conditions call for understanding alternative investments and how they could add value to portfolios and minimize the effects of market volatility. The following offers an explanation of alternative assets and how to incorporate them in an investment strategy. We also provide our perspective into the four categories of alternative investments that we believe investors should consider: private equity, private credit, private real estate and hedge funds. Continue Reading(PDF, 500KB)

August 12, 2022

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