I’ve been in the investing game for three decades now… And the biggest secret I’ve uncovered to building wealth—and keeping it—is diversification.
For years, I’ve witnessed people on Wall Street make untold millions using alternative strategies—things most regular investors know nothing about.
And today, I’ll share three alternative assets we’re bullish on at PBRG—along with why every investor should consider adding them to their portfolios…
I’ve always said everyone needs to add some crypto exposure to their portfolios.
You see, cryptos are uncorrelated to the markets. In other words, their movements aren’t tied to the stock market or overall business cycle…
Correlated assets move together in price direction. For example, healthcare stocks generally move in the same direction as each other. They’re usually affected by the same events.
And inversely correlated assets move in opposite price directions. For example, when the U.S. dollar goes down, gold prices usually go up.
But uncorrelated assets aren’t affected by these forces. And Wall Street is starting to realize that the price of bitcoin is unrelated to the prices of gold, stocks, bonds, or commodities.
Plus, a study last year by Bitwise Asset Management concluded that allocating just 1–10% of your portfolio to bitcoin gives better risk-adjusted returns than just holding only stocks and bonds.
So this is Wall Street’s “Holy Grail”—an uncorrelated asset performing well under diverse market conditions… and maintaining its ability to rise at the same time.
Like cryptos, collectibles are also uncorrelated assets. They’re hard assets that maintain their value. And that’s why millionaires and celebrities have been enjoying and profiting from them for years.
Look at vintage cars…
From 2007 to 2017, the classic car component of the Knight Frank Luxury Investment Index returned 334%. The S&P 500 gained just 82% during that time.
Even last year—when almost all asset classes lost money—the HAGI Top Index for rare classic cars was up 2.5%.
Classic cars have risen in value for the last 30 years. And during the 2008 financial crisis, the smart money flowed into this safe-haven asset.
With all the volatility in the stock market, it’s important to diversify your assets. And investing in these collectibles—like cars, art, and even baseball cards—is a great way to do so. It’s how some of the richest people on the planet have grown their wealth…
According to McKinsey & Company, private markets have over $5 trillion in assets under management. And for years, Wall Street and venture capitalists (VCs) have walled off this ocean of capital from ordinary investors.
It’s no wonder why…
As you can see in the chart below, the average VC fund has crushed the returns of public markets over the long term using this strategy…
For decades, 99% of Americans have been locked out of this exclusive market. You needed a net worth of at least $1 million or had to be connected to insiders.
But thanks to some recent regulatory changes, you can now invest in private companies before they become public.
They’re called Regulation A+ offerings. And they’re open to the general public—not just accredited investors. In some cases, you can buy into these private deals with minimums of $500–1,000.
These sweetheart deals being available to the general public now is a real game changer.
Main Street can finally take advantage of the deals Wall Street fat cats and West Coast VCs have used for decades to generate incredible wealth outside the stock market.
Diversification Is Your Shield
Adding cryptos, collectibles, and private placements to your portfolios will generate long-term outperformance.
One way to gain exposure to cryptos is bitcoin. It’s the reserve currency of the crypto space.
If you want to explore private equity investing, consider crowdfunding platforms like SeedInvest and MicroVentures. They list dozens of startup companies raising money from the general public. In some cases, you can get started with as little as $100. There are similar platforms for investing in collectibles, too.
And remember, always do your homework before making any investment.
Let the Game Come to You!
Editor, Palm Beach Daily
P.S. As I mentioned above, the key to building wealth is diversifying your assets. And until recently, most people haven’t had access to one of my favorites: private startups.
The wealthy get to invest in these private placements… and then take these companies public at a higher price and make millions per deal. These are the types of deals that were once made on golf courses or private jets.
Now, I’ve found a backdoor way for ordinary investors to enter this market with as little as $100—and have the chance to become millionaires.