Why Experts Are Flocking to Alternative Assets
It’s no secret that 2022 was a rollercoaster ride for the stock and bond markets. This volatility has turned the spotlight onto a less-traveled investment path: alternative assets. Recent data from the Financial Planning Association shows that nearly a third of advisors are exploring alternative investments for their clients. But why are experts flocking to Alternative Assets?
Why Alternative Assets?
Alternative assets encompass a broad spectrum of investments outside of your traditional stocks, bonds, and cash. Things like real estate, collectibles, private equity, and more. But why the sudden interest from institutional investors and financial advisors?
The key benefits include diversification, risk reduction, and potentially higher returns. Remember, not all alternative assets are created equal – they come with different levels of liquidity, risk, and likely return.
Investing in alternatives requires careful consideration and extensive due diligence. It’s crucial to understand the product, its role in your portfolio, and the reason behind your investment decision.
We have been delivering results to our clients in the alternatives space for over 5 years now, using a platform that offers access to Merchant Cash Advance (MCA) investments.
Merchant Cash Advances (MCAs) offer unique benefits that make them an attractive addition to your investment portfolio.
- First off, they provide a high yield potential, often outpacing traditional investments.
- Secondly, they tend to be uncorrelated with broader markets, providing much-needed portfolio diversification, especially during volatile times. This means that MCAs can provide robust returns even when traditional markets are underperforming.
- Lastly, MCAs can come with shorter-term horizons, allowing for greater liquidity than many other alternative investments. We offer both a 12-month and a 24 month
The FPA report specified that:
“Among respondents who are using alternatives on behalf of their clients, 55 percent cited diversification as one of their objectives, followed by 41 percent who are looking for risk mitigation. Roughly one quarter counted upside growth potential (25 percent), protection against inflation (24 percent), or income generation (23 percent) among their objectives.”
It’s this combination of potentially higher yield, diversification, and relative liquidity that makes MCAs a compelling option for savvy investors.
Navigating the Challenges
Alternative assets come with their own set of challenges. For some, the lack of liquidity and higher fees associated with certain products pose significant barriers. These risks should be well-understood and weighed against potential returns.
Alternative Asset Investing with Supervest
What sets Supervest apart is its focus on MCAs, a unique type of alternative asset. MCAs offer the opportunity for potentially robust returns and diversification, all while mitigating some of the liquidity and fee concerns typically associated with alternative investments.
The beauty of alternative assets, especially MCAs, lies in their potential to weather economic volatility. With Supervest, investing in MCAs can be a great way to help achieve a balanced and resilient portfolio.
Optimizing Your Portfolio with Alternative Asset Investing
While alternative assets may not be the perfect fit for everyone, they do offer a valuable tool for diversification and risk mitigation, particularly during high-volatility markets or broader economic uncertainty. Investing in MCAs can be an exciting way to explore this space just like the experts are.
Alternative assets, and MCAs in particular, are well worth considering for those seeking to diversify their portfolio and boost potential returns. With the right knowledge, a clear understanding of your investment goals, and a reliable platform like Supervest, you’ll be well on your way to a resilient and prosperous investment journey.
You can get started on your MCA investing journey here.