Market volatility has been especially intense lately, with the recent August crash sparked by a flash crash in Japan and growing fears of a U.S. recession.

But you don’t need to worry! Because alternative assets can help you protect and grow wealth – and this blog explains how.

 

Why should I care about market volatility?

Market volatility can lead to sharp and unpredictable swings in the value of traditional assets like stocks and bonds. Just last month, the S&P 500 faced its worst day since 2022.

Over the past five years, we’ve also faced Covid-19, the war in Ukraine, and unrest in Palestine—which have all contributed to ongoing market instability.

Protecting against this volatility is important for keeping capital secure, whether it’s yours or your clients’. Thankfully, alternative assets can contribute to your capital protection and growth strategies.

How can alternative assets protect me against market volatility?

Alternative assets are often less tied to traditional markets, meaning they often won’t suffer as much during sharp downturns.

Imagine you have a diversified portfolio that includes alternative assets. When the stock market crashes, your alts can help keep your portfolio stable, potentially helping to minimize your losses.

A real-world example of this strategy in action is the Pritzker family office, which weathered the 2008 financial crisis by leaning heavily on real estate and private equity investments.

Our Small Business Finance notes could help you achieve stability during periods of market volatility. With a 100% success rate in reaching their target returns, these notes can offer you a potentially dependable return that isn’t as affected by the ups and downs of traditional markets.

 

What else can I do to protect against market volatility?

Timing and a well-thought-out investment strategy are key to mitigating the effects of market volatility. Aligning your investments with the current market can make all the difference.

Consider an investor who notices rising volatility and decides to shift part of their portfolio into an alternative asset like our small business finance notes, real estate, or PE. This potentially more stable asset can help offset the risks of more volatile investments.

Keep your investment strategy sharp with our free newsletter, which can help you time your alternative investments more effectively.

 

What can I do right now?

Ready to strengthen your investment strategy? Create a free investor account today and see how our Small Business Finance notes can help enhance your portfolio.

Don’t forget, when you refer a friend to Supervest, you’ll get a personalized, one-on-one meeting with our Chief Investment Officer, John Donahue to review your portfolio.