Historical data is great. It plays an important role in making smart investment decisions with your alternative assets. You need data. And more data. That’s what we’re here for.
While past data can’t predict future outcomes, you can use what’s happened in the past to try and make better choices today.
Here, we’ll cover five defining trends in alternative assets including real estate, private equity, commodities and hedge funds to give you insights into your own portfolio.
If you want to learn about these trends in a more interactive way, take our Spot the Trend: Investment Edition quiz.
Spotting Investment Trends in Alternative Assets
Real Estate, Private Equity, and Commodities
- Real Estate: Defining trends include urbanization and technological integration.
Photo by Getty Images
The growth of 7.8% in just one year can be partially explained by the trends towards urban living and tech integration.
The increase in city living boosts market growth by raising demand for homes and offices, which leads to higher property values and more investment opportunities.
As more and more consumers demand smart tech integrations in their homes, developers add advanced technologies, making properties more appealing and valuable.
- Private Equity: Trends show increased investments in tech startups and buyouts.
The global tech sector attracted $675 billion from private equity in 2022, up from $100 billion in 2012. Think of Facebook’s acquisition of WhatsApp for $19 billion.
- Commodities: One of the most defining trends in commodities is the impact of geopolitical events.
A great example is oil prices, which have experienced extreme volatility over the past few decades.
In December 1998 oil rose from $12 per barrel to $145 per barrel by July 2008, then fell below $40 per barrel again before the end of 2008.
Understanding Hedge Fund Performance Trends – a Weird Alternative Asset
Over the past decade, hedge funds have generally underperformed compared to the S&P 500 index.
From 2011 to 2020, the average annual return for hedge funds was 5.0%, while the S&P 500 index returned 14.4% annually.
Source: AEI
Developing Alternative Asset Investment Strategies Using Historical Trends
Now that you know about these alternative assets trends, what do you want to do about it?
Take a moment to review your own investment portfolio or those of your clients. Take your time.
Consider how any of these trends apply to your investments, and what they might suggest about future trends in alternative asset investing.
Supervest’s Small Business Finance notes are a versatile option either way, as they can offer potentially high-yield returns over a short period of time.
For example, if you invest in this note with a 14% annualized yield, you receive your interest payments plus the principal at the end of only 2 years.
To date, they’ve achieved a 100% success rate in reaching their target return rates.
What can I do now?
Understanding trends in alternative assets can help you make better investment decisions. Knowledge is power! You’ve got this.
Worried about your investment blind spots? This can help.
If you want to learn more about these trends, take our Spot the Trend: Investment Edition quiz.
Or, you can explore Supervest’s alternative asset investment notes to diversify your portfolio today.
