Alternative Investments Risk Profile Comparisons

Alternative Investments Risk Profile Comparisons

June 22, 2022

Alternative investments are currently exceedingly popular as they can function as a buffer against both inflation and a slowing economic environment.  The Federal Reserve Board is committed to raising interest rates for the rest of the year, and many economists are forecasting significantly lower growth in 2022 and 2023 with the potential for recession in 2023.

In the graphic below we show how a portfolio with 20% alternative investments performed against the typical 60/40 portfolio in the last 12 and 24 months.


 In both cases, the portfolio with a 20% allocation to alternative investments outperformed the 60/40 portfolio.  This illustrates how they can act as a floor in declining markets and add upside potential in an upward moving market.

Sierra Pacific Financial Advisors will be hosting a webinar on Alternative Investments this Thursday, June 23 at 1:00 PT.  Please click on the registration link if you would like to join us.  Register Here

Sierra Pacific Financial Advisors, LLC (SPFA) is a Registered Investment Advisors (RIA) located in Pleasanton California with offices in Sunnyvale and Oakland California.  If you would like to meet with us please click on the calendar link below to schedule a time.  Schedule a 15 Minute Call Here