Is the Bull Turning into a Bear? Alternative Investments Can Protect Against Market Volatility

December 28, 2018
By Millennium Trust
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Now that we have almost hit the 10-year mark of a historic bull market, the stock market is finally starting to show some signs of increased volatility and vulnerability. Though a market correction – defined as a 10% decline in the market – is not unusual, it can make many investors uneasy. If there is a 20% decline or more in a two-month period, that could be a sign of the start of a bear market.

Many investors use this time of year – end of year and the beginning of tax season – to take a look at their asset allocation to make sure it is aligned with their long-term investment goals. With the recent market volatility and some concern about a potential bear market, it’s as important as ever to be mindful of diversification.

Can investing in alternatives protect against a volatile market?

Alternative assets typically perform differently than the traditional stocks and bonds. Alternatives have low correlation with other asset classes and can continue to prosper regardless of what is happening in the markets – especially in a tax-advantaged vehicle like a self-directed IRA. Consequently, any added layers of diversification can help protect against a drop in the market.

It’s important that investors educate themselves about all of their investment options and seek out advice from a qualified professional, as appropriate. There are also a wide variety of resources available online for investors to learn more about alternative assets, like the Millennium Alternative Investment Network® (MAIN®).

Visit MAIN to:

Discover the multi-trillion dollar world of alternative investments. Learn about how alternatives aren’t just for large, institutional investors anymore and can be powerful diversifiers in your portfolio – including in a self-directed IRA, which can add the benefit of tax-deferred growth over time.

Research different types of asset classes, like:  

  • Private Equity/Debt

  • Marketplace Lending

  • Real Estate

  • Managed Futures

  • Precious Metals

  • Multi-Strategy

MAIN contains a growing number of investment platforms, making a variety of investment options accessible to the individual investor.

Invest in alternatives at low investment minimums. MAIN makes it easy to find in-depth information about the investments and the requirements for investing.

It’s a good idea to work with your advisor to make sure that your asset allocation aligns with your overall goals, and consider how alternatives may help you attain a diversified portfolio in a volatile market.

Visit MAIN to get started today. And, don’t forget to check out our Alternative Investment eBook.

 

The material in this blog is presented for informational purposes only. Millennium Trust Company performs the duties of a directed custodian, and as such does not sell investments or provide investment, legal or tax advice. Millennium Trust does not undertake any due diligence for you, including on the Platforms listed on MAIN, their prospective investments or any other investment you may select. The inclusion of any Platform on MAIN in no way represents an endorsement or recommendation of the Platform or its investment options. The Platforms and investment options on MAIN are not a complete list of investment providers or investments that you may choose to hold in your Millennium Trust account, and are provided for informational purposes only.

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