Better alternatives
The Capgemini World Wealth Report found that high net worth individuals increased their portfolio allocations to alternative assets from 13% in 2023 to 15% in 2024.
If you're interested in taking this approach and not having to deal with the stock market ‘s volatility, there are accessible ways to invest in alternative assets and shield yourself from another potential crash.
A creative alternative
Fine art tends to be a good investment as its value remains generally more stable compared to market fluctuations. But, art has not historically been the most accessible asset to invest in. Not everyone has the time — or cash — to sit an auction and wave a paddle for the highest bid.
Luckily with Masterworks, you can dip your toes into the world of fine art without dropping millions on a painting at an auction. Their investment platform allows you to buy and sell shares of iconic works of art — as in Banksy and Picasso-level iconic — just as you would stocks.
It’s simple to get started. Once you join the Masterworks community of more than 280,000 members, you can tap into a whole lot of data and insights and use them to guide you in choosing the art you want to put your money into.
Real estate
Another alternative option that has proven to provide solid returns amidst economic turmoil is real estate. While real estate can be a daunting investment due to high prices, it is possible to get in on this asset without dropping all of your cash.
For example, adding real estate to your portoflio allows you to benefit from the potential for steady income and long-term appreciation while reducing your exposure to stock market volatility.
If you're looking to tap into the investment potential of real estate but don't have the funds for a traditional down payment, consider investing in home equity instead with a platform like CityFunds.
Here’s how it works: The company allows you to invest in portfolios of owner-occupied homes. In exchange for the cash, Cityfunds secures an interest in the home's future value. As the home value appreciates, so does the value of Cityfunds equity investment alongside the homeowner.
With a community of over 10,000 users, CityFunds allows you to benefit from the $20 trillion home equity market across various cities.
So you can invest in the housing market of a city you love for as little as $500, without having to deal with high home prices, an expensive mortgage or the hassles of being a landlord.
Residential real estate isn’t the only option if you’re keen to invest in real estate.
A report by First National Realty Partners — a private equity firm — found that in times of market stress, you can both buy great commercial properties at a discount and acquire higher quality properties more easily than in normal markets.
Accredited investors can invest in commercial real estate easily through First National Realty Partners (FNRP).
Through FNRP, you have access to institutional-quality, grocery-anchored commercial real estate investments without the leg work of finding or managing the deals on your own.
Since the investments are necessity-based, they tend to act as a solid hedge against inflation during turbulent economic times.
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