In 2023, global economies are more correlated than ever, making it difficult to rely solely on buying traditional investments such as stocks and bonds to build a diversified portfolio. Investors are searching for uncorrelated alternative investments to offset numerous market risks.
Because alternatives tend to behave independently from stocks and bonds, adding them to your portfolio can offer scope, broader diversification, and the potential to reduce risk and enhance returns.
Thoughtful alternative investment selection requires a focus on an investor’s goals and financial risk tolerance. By taking these considerations into account, investors can make more informed decisions regarding the role of alternatives in their portfolios.