Tags: alternative | investments | stock | market | volatility

Forbes.com: 3 Alternative Investments to Escape Stock Volatility

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Monday, 12 November 2018 01:53 PM

Forbes.com contributor Adam Sarhan recently suggested a trio of alternative investments “that are worth doing more research on” as the seemingly endless stock-market volatility forces savvy investors to seek shelter from the gathering storm.

“Stocks can continue to rally from here but history shows us that it is just a matter of time until we slip into another bear market,” Sarhan wrote for Forbes.com. “Many studies also show that alternative investments are a good way to diversify your portfolio in both bull and bear markets.”

Sarhan’s three suggestions:

Private Equity

“The idea here is that you can find a manager who can buy private businesses, fix them up and either sell them or take them public in a few years. Many smaller companies are either sole proprietors or partnerships, and some may need more funds to expand operations or improvements to their business. These small companies and shops’ performance will likely be more heavily dictated by proprietor experience and local economics, which offers investors a good alternative to stocks and bonds,” Sarhan explained.

Real Estate

“Unlike stocks, real estate is tangible and everyone can relate to it, since we all live and work in some form of real estate,” he explained. Sarhan said Ray Sturm, CEO of AlphaFlow, an automated alternative investment platform for real estate, “told me via email that the most important thing an investor can do is look at their portfolio holistically, particularly with a view to the long term rather than getting caught up in day-to-day market madness.”

Marine Finance

Marine finance is an interesting alternative investment that allows people to invest in different aspects of the shipping industry. “People can finance new ships, help companies buy new ships to expand their fleets, and invest in deconstructions. Marine finance is usually most impacted by global trade (e.g. emerging market improvements/declines) and vessel supply.”

Meanwhile, investors have not been favoring alternative strategy mutual funds even as the stock market gets long in the tooth, Investment News cited Morningstar as reporting.

"Liquid alternatives that can zag when the equity market zigs have underperformed in the current, yet aging, bull market," Todd Rosenbluth, director of mutual fund and ETF research at CFRA, told Investment News. "However, if market volatility picks up further, these differentiated strategies could hold up better."

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Forbes.com contributor Adam Sarhan recently suggested a trio of alternative investments “that are worth doing more research on” as the seemingly endless stock-market volatility forces savvy investors to seek shelter from the gathering storm.
alternative, investments, stock, market, volatility
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2018-53-12
Monday, 12 November 2018 01:53 PM
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