Exploring Alternative Investments with Prosperity President Michele Martin
Investors are looking beyond traditional stock market investments as they seek to diversify their portfolios and mitigate risks in the current market environment. With stock market indexes hitting consecutive record highs, alternative investments such as real estate, natural resources, commodities, and hedge funds are gaining traction among investors.
Prosperity President Michele Martin recently joined Yahoo Finance in-studio to discuss the benefits of alternative investing strategies and asset classes. Martin highlighted the potential for alternative investments to de-risk a portfolio by providing a buffer on the downside through strategies like covered calls and puts. This buffer can range from 5% to 25%, offering protection against market volatility while still allowing investors to participate in market returns.
One key advantage of alternative investments is their liquidity, with options like ETFs and mutual funds offering next-day liquidity compared to traditional alternatives like real estate or private equity. Martin emphasized the importance of understanding the role of alternative investments in a portfolio and aligning them with overall objectives and return expectations.
Looking ahead, alternative credit emerged as a promising investment opportunity for 2024, with returns ranging from 8% to 10% over the past year. This sector has shown strong performance compared to traditional credit investments, offering potential outperformance for investors in the current market environment.
As investors navigate market uncertainties and seek to diversify their portfolios, alternative investments present a compelling opportunity to manage risks and enhance returns. Stay tuned for more expert insights and market updates on Yahoo Finance Live.
