The interest in—and the need for—alternative investments such as opportunities in real estate, private equity, hedge funds and natural resources, continues to grow at a steady pace. And given the current state of the overvalued equity markets and an unsteady bond market, there’s good reason for the uptick in interest.
A recent research study conducted by data analyst firm Preqin, says, “The alternative assets industry is bigger than ever, with more than $7.7 trillion in hedge fund and private capital assets managed globally, having grown by $300 billion during 2016.”
The study also evaluated how institutional investors are allocating funds to alternative investments, and it serves as a good indicator of how alternatives are performing overall.
We’ve been saying for a while that in the foreseeable future it will become harder to realize good returns on traditional investments (stocks and bonds) due to an overvalued stock market and rising interest rates that negatively affect the bond market.
It looks like others in the industry are finally catching up to our thinking, as illustrated by a recent Reuters article that featured comments from prominent investment fund managers.
Top investment fund managers at the Milken Institute Global Conference this week said they had little choice but to focus on unusual and complicated corners of the financial markets as stock markets have risen and interest rates remain low.
Gray divorce, or divorce among couples aged 50+, is on the rise nationally, and according to the Pew Research Center it has doubled over the past 25 years.
In addition to the wide range of emotions that accompany any divorce, a gray divorce can lead to particularly significant financial ramifications since the couple is closer to retirement age and may not have as much time to rebuild or boost their individual wealth.
As you develop and modify your investing strategies over time, one important factor you need to consider is liquidity. Investopedia defines liquidity as “the term used to describe how easy it is to convert assets into cash.”
Cash is your most liquid asset because it can always be used easily and immediately. And cash is what everything else is compared to in terms of liquidity.
Over the course of your life, your priorities may change, and you may need quick access to cash from your investment portfolio. While you may be considered wealthy in terms of the total value of assets you own, if you are unable to quickly convert some of those assets into cash during times of need, it could put you in a tight spot.
We’ve discussed the financial literacy gender gap in this blog before, but a new survey by Fidelity Investments shows just how bad financial literacy has become among all Americans, no matter their gender.
In a recent report, MarketWatch outlined some questions and results from the survey, and we’ll examine a few of them in this blog and provide our input.
Q: Roughly how much do investment professionals estimate people should save by the time they retire?
According to the Internal Revenue Service (IRS), nearly 80 percent of people who file taxes receive a refund of some amount.
It’s a great feeling to get an influx of cash, but before you go and spend it all in one place, consider this an opportunity to grow your savings or to invest. It may not seem like a fun option in the present moment, but your future self will thank you.
Here are some ideas:
While we expect the bulls to run in the equity markets during the short-term, we still see a potential bear market and/or recession on the horizon – i.e. 2-3 years from now.
So now is the time to prepare your portfolio by mixing in opportunities from alternative asset classes that don’t correlate directly with the stock and bond markets. That way, whether the bears return or not, your portfolio can be protected from a devastating loss.
Any time you want to add an alternative investment to your portfolio, we recommend that you consult with a wealth manager that specializes in those kinds of investments. We also recommend that you first gauge your risk tolerance, so you and your advisor can build an investment strategy that both fits your needs and resides in your risk comfort zone.
As we stated in our last blog, we believe the current bull market may well run for another 2-3 years based on current indicators (not just the “Trump Bump”). But why?
Historically, an economic recession occurs between 45 to 57 months following the inception of an economic expansion. Characteristically, these recessions tend to be preceded by equity bear markets (declines of 20% or more) which are generally considered a “leading indicator”.
The Dow Jones Industrial Average hit 20,000 for the first-time last month as it continues its march into record territory – showing that there is no slowdown in the current bull market that has lasted almost eight years. The question on our minds, as well as others in the investment community, is whether or not this current market surge is just a “Trump bump” or is part of a more sustainable trend?
MarketWatch published a recent chart and article stating that this bull market may last another 7-8 years.
If you don’t trust your wealth manager, then you should find someone else. It’s as simple as that, because trust is by far your most important asset when building wealth.
Between the high-profile Ponzi schemes in our recent past and the misinformation that currently clutters the investing world, many people today don’t fully trust their investment advisors. And this trend is illustrated in a recent American Association of Individual Investors (AAII) survey that showed more than 65 percent of investors lack that vital trust.
The glaring fact is that a single, unscrupulous investment advisor can have a major, destructive impact on your wealth and life savings—eradicating years of your hard work.