Amid Brexit, the trade war, and plummeting stock buybacks… it seems every day brings a new worry to the stock and bond markets.
Let me be clear: If all you hold are stocks and bonds, you should be worried. In all my years on Wall Street, I’ve never witnessed as much direct manipulation of financial markets as I am now.
A combination of “jaw-boning” by the White House via Twitter and central banks relentlessly pushing interest rates lower has created a mass of uncertainty.
For these reasons and more, I’ve always said that traditional investments should be just one part of your entire portfolio.
In my flagship newsletter, The Palm Beach Letter, we’ve taken a holistic approach to wealth-building. We balance our model portfolios with traditional and non-traditional investments.
And the result has been the delivery of stunning returns with far lower risk than those of stocks and bonds.
So today, I’ll show you the strategy we’ve used to achieve these returns—and more importantly, how you can adopt it yourself…
Thinking Outside the Box
Our secret is embracing alternative assets: investments like real estate, private equity, private debt, cryptos, and more…
In fact, global consulting firm PricewaterhouseCoopers expects alternative assets to grow to $21 trillion in 2025 from $10 trillion in 2016. That’s 110% growth. And the main driver of it is the low yields in the stock and bond markets.
You see, Wall Street typically recommends investors hold bonds and other fixed-income investments to prepare for retirement.
But here’s what they won’t tell you: Their performance depends on interest rates. So the historically low rate levels (like we’re seeing now) have resulted in equally low returns.
Now, private assets’ performance isn’t tied to rates. So they can deliver income streams, regardless of what the Fed does. (In finance speak, they’re “uncorrelated” assets.)
They offer great diversification. And that’s why we’re seeing conservative pension plans move into this space. They just can’t make the types of returns they need to stay afloat by sitting in bonds.
“You’ve had a mad rush into these private assets. It’s a low-yield environment, so everyone is piling in,” said Elliot Hentov, head of policy research at State Street Global Advisors.
And one place pension plans are piling into is the $5 trillion private equity market.
When you compare the long-term returns of private markets compared to public markets, you’ll see why…
But here’s the thing: Private markets were the exclusive playground of venture capitalists and other institutional investors—until recently…
Now Open to Main Street
For decades, 99% of Americans have been locked out of private markets. 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 them.
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 or $1,000.
But these private companies don’t trade on public exchanges the way Apple and Walmart do. You have to do tons of research to find them.
And in The Palm Beach Letter, I’ve found a backdoor way for ordinary investors to tap into these markets and make up to 25% a year by doing it. (PBL subscribers can catch up right here.)
If you want to explore private equity investing yourself, consider crowdfunding platforms like SeedInvest and MicroVentures. They list dozens of startup companies raising money from the general public. And in some cases, you can get started with as little as $100.
Of course, do your due diligence first… Investing in small startups is risky; for instance, nine out of 10 normally fail. But you only need a small grubstake to make life-changing gains. Just one multibagger can more than make up for a string of duds.
Private markets are a real game changer. They’ll level the playing field for investors getting the shakedown from central bankers.
Let the Game Come to You!
Editor, Palm Beach Daily
P.S. As I mentioned above, I’ve found a backdoor way to own the world’s most coveted private companies. And since we’ve already vetted this opportunity, you don’t have to do all the research yourself. It’s a unique way of investing that has the power to bring you more gains than the average stock market returns… with much less volatility.
To get your chance at potentially seeing six times the average stock market returns click here.