With stocks showing strong growth, investors are looking to alternative investments for diversification. Roosevelt Bowman, Bernstein Private Wealth Management’s Senior Investment Strategist, highlights the fallout from bank stress as a key opportunity. Buying high-quality assets at discounts due to banks offloading unwanted assets is a strategy with potential for great returns.
Bowman emphasizes focusing on finding value in volatility, with equity investments offering long-term growth potential. Additionally, debt investments provide diversification and lower volatility. Private credit, in particular, with its floating rate debt, offers appreciation with rising interest rates, offsetting the potential negative impact on equity portfolios.
In the realm of real estate, residential properties in areas with strong population and income growth, as well as logistics centers due to the surge in e-commerce, are attractive opportunities.
Overall, alternative investments offer higher returns than traditional stocks and bonds, with the trade-off of lower liquidity and longer time frames. By diversifying into these assets, investors can mitigate risks and potentially enhance their overall portfolio performance.
