New Note Offerings Available Now!

Why the Future of Investing Isn’t Trees or Crops

August 18, 2023

Start Investing

Traditional portfolios like the once-revered 60/40 split are losing their luster. Data shows that the yield generated by a 60/40 portfolio has decreased to less than 2% compared to the 5%+ offered in years gone by. So what does the portfolio of the future look like?

Nick Cunnigham, of Goldman Sachs, reported that the solid performance of the 60/40 in the past has “given rise to a feeling amongst investors that ‘what has worked will continue to work’—a behavioral misstep known as recency bias.”

In response to the death cry of the 60/40, alternative assets have been getting a lot of press for the unique benefits they can bring to a portfolio. Forestry and farmland investing are two of the many alternative assets available in the market. But how do MCAs stack up against forestry and farmland?

Let’s take a look.

Photo of a wheat field future
Where crops can be slow-growing, MCAs don’t have to be. Photo by Pixabay.

MCAs vs. Forestry and Farmland: A Deeper Dive into the Future

  • Immediate Liquidity: Forestry and farmland investments undeniably offer returns, but they are often slow burners, taking years or even decades to reach maturity.

Let’s consider timber: it can take upwards of 30 years for certain species to mature. Verus notes that forestry and farmland are less than ideal because of a lack of ongoing income. Land has ‘lumpy’ profit payouts and there are low commodity prices for trees.

On the flip side, MCAs provide rapid liquidity. Compare a 30-year maturation rate with a short-term note from Supervest—within just 12 months, they’re potentially generating target returns of 10%.  We find that this is especially attractive for family offices or high net-worth investors who might need to quickly access or shift capital.

  • Resilience in Economic Shifts: While trees and crops are susceptible to the whims of weather patterns, diseases, and global trade dynamics, MCAs are inherently adaptable.

MCAs are unique because they move with business tides, mirroring commercial activities. Economic upturn? Businesses thrive, which can mean strong returns. Economic downturn? Traditional sales could dip, but many businesses turn to MCAs for their financing needs, ensuring a continued demand. Win-win.

  • Diverse Opportunities: Diversity is the bedrock of a resilient portfolio. While timber and crops offer some variety, MCAs present a broader spectrum.

Platforms like Supervest offer not just one, but several investment opportunities. You can invest in our mid-term note, which not only targets an impressive 12% return over two years but also provides quarterly interest payouts—a consistent income stream.

Brown Chop Logs in the Outdoors future
Timber can be an investment 30 years in the making. Photo by Lukas.

Not Just Another Investment—It’s an Elite Movement

Unprecedented Momentum: Over $900M has already been funded on Supervest. This isn’t a blip on the radar or a passing trend; it’s a movement. Trust and interest in MCAs is growing. Over 38,000 individual merchant deals validate the sustained interest and success of this alternative investment avenue.

Exclusive:  The $25K minimum investment ensures exclusivity. It’s a symbol of commitment and ensures that every stakeholder on the platform is serious, discerning, and aiming for the top tier of returns.

Rigorous Professional Oversight: Every MCA on Supervest undergoes meticulous scrutiny by a cadre of industry professionals. Imagine having a group of industry veterans personally analyzing each investment opportunity. That’s what you get—a curated selection of the most promising ventures.

The Future is here: The New Age of Investment Titans Awaits

It’s time to pivot away from unprofitable and out-of-date strategies.

As timber grows and crops ripen, the MCA space is bustling with activity, promising quicker returns and dynamic adaptability.

Embrace Diversification: The 60/40 portfolio split is slowly becoming a relic of the past. MCAs offer a promising path forward.

Personal Guidance: Got questions? Talk to us.

Seize the Moment: Premium investment opportunities aren’t limitless. With a burgeoning interest in MCAs, now’s the time to act.

Redefine the future of your portfolio now.

Back to Insights