Dick Pfister in With Intelligence: Why Investors Are Rapidly Turning Toward Alternatives

Many investors grappling with high inflation and its impacts on their portfolios are following AlphaCore Wealth Advisory’s lead and diversifying their portfolios by adding alternatives to their asset allocation mix. As interest in allocating to alternatives increases, the industry has seen a massive increase in inflows, with alternative-focused ETFs and funds receiving $23.4B year-to-date, while traditional active categories suffer from large outflows. To help investors better understand the reasons behind this increase in inflows, With Intelligence turned to AlphaCore Wealth Advisory CEO Dick Pfister, CAIA, to learn more.

According to Pfister, inflation has driven investors to seek returns, which can typically be found in undervalued firms. “Inflation has shifted investor sentiment to prioritize profits,” he tells the publication. “We think this not only makes sense given the new paradigm of real return, but also from a valuation multiple perspective. Many of these types of companies have long been forgotten by Wall Street in the last several years and often trade below current market multiples.”

To learn more about alternative investments and why AlphaCore Wealth Advisory believes it is an essential part of a well-diversified portfolio that can help preserve wealth for investors during times of volatility, please do not hesitate to contact us.