As the market has become increasingly volatile this year, traditional portfolios with 60% stocks and 40% bonds have lost their effectiveness in providing investors attractive returns. Instead, 2022 has become the time for investors to think outside the box to hedge against risks and begin building portfolios through an alternative investing lens. The MarketBeat Podcast recently interviewed AlphaCore CEO and Founder Dick Pfister, CAIA, for insight on how investors can utilize alternative investments to help generate returns in times of volatility.
During their conversation, Pfister and host Kate Stalter specifically discussed:
- Demystifying alternatives for individual investors
- Why active investing is not dead
- Different types of alternative strategies
- How long-short equity strategies can diversify portfolios
- Where gold and precious metals fit as an alternative to long equities
- The alternative asset classes that act best as inflation hedges
- Thoughts on specific sectors and stocks within them
- Importance of diversifying across different, value-based sectors
- Outlook for traditional fixed income assets and opportunities within the sector
- How investors should react to volatile markets without panicking
Throughout the episode, Pfister emphasizes the importance of a diversified investing methodology during market downturns. At AlphaCore, it includes four different asset classes: long-only stocks, long-only fixed income, long-only alternative asset classes and active alternative strategies. Through these four buckets, we believe investors can become well diversified enough to hedge against risk and achieve attractive returns, even during periods of volatility.
About The MarketBeat Podcast: The MarketBeat Podcast features stock market and financial news with special guests from MarketBeat.com, and interviews with the top names in investing and trading the market hosted by Kate Stalter.
This podcast represents the opinions of AlphaCore Capital in general, and there is no guarantee that any forecasts made will come to pass. Due to various risks and uncertainties, actual events, results or performance may differ materially from those reflected or contemplated in any forward-looking statements. This material is not intended to be relied upon as a forecast or investment advice, and do not constitute a recommendation, offer, or solicitation for any specific security or any specific investment strategy, as AlphaCore provides investment advice only within the context of our written advisory agreement with each AlphaCore client. The illustrative securities discussed were provided as representative of companies AlphaCore believes may be positioned favorably in the current market environment versus past performance. The opinions are based on market conditions as of the date of publication, and are subject to change. No obligation is undertaken to update any information, data or material contained herein. It should not be assumed that any of the securities discussed were or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable. Past performance is not indicative of future results.