Gold
Gold has been around longer than any piece of ancient art and its collectors include central banks and sovereign nations. The market for this precious metal is also much more transparent and robust.
Gold’s reputation as an uncorrelated, safe haven has been cemented in recent months. As President Donald Trump’s ongoing trade war whips up volatility in stocks, bonds and cryptocurrencies, the price of gold has surged roughly 25% over the past six months.
Adding some exposure to this hard asset could be a good idea if you’re worried about economic growth, inflation or interest rate volatility over the medium to long term.
Invest in real estate without the headache of being a landlord
Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.
The best part? You don’t have to be a millionaire and can start investing in minutes.
Learn MoreReal estate
Tangible land and property has strikingly different dynamics than either stocks or bonds. According to an analysis by J.P. Morgan , direct real estate as an asset class tends to have low or even negative correlation with the S&P 500.
To be clear, J.P. Morgan focused on direct real estate deals. An analysis by Guggenheim Investments found that real estate investment trusts (REITs) had higher correlation with the S&P 500. That means if you’re a homeowner or landlord with direct ownership, you’re less exposed to the stock market’s volatility.
You could also consider a crowdfunding platform to get access to niche real estate deals.
Infrastructure
Infrastructure assets such as toll roads, bridges, cell phone towers and airports have many of the same dynamics as real estate. However, these assets are more rare and could have great earnings potential.
According to KKR, private infrastructure assets across the world performed better than stocks and bonds in 2022, when inflation and interest rates were rapidly rising. That makes these assets an ideal “shock absorber” for a typical investor’s portfolio.
If you’re looking to add some exposure to this niche asset class, consider the iShares U.S. Infrastructure ETF or the SPDR S&P Global Infrastructure ETF. You could also take a closer look at infrastructure stocks such as wireless infrastructure manager American Tower, pipeline owner Enbridge or electric vehicle charging operator ChargePoint Holdings.
Pipelines and cell towers might not be as exciting as rare exotic artwork, but they’re likely to be more lucrative and less volatile.
The richest 1% use an advisor. Do you?
Wealthy people know that having money is not the same as being good with money. Advisor.com can help you shape your financial future and connect with expert guidance . A trusted advisor helps you make smart choices about investments, retirement savings, and tax planning. Try Advisor.com now.