Investing cash through alternative strategies
Key takeaways:
- Uncertainty around stock vs. bond correlation suggests elevated needs for portfolio diversification and additional sources of return.
- Higher for longer interest rates can structurally benefit ‘cash plus’ alternative strategies, which have historically performed better when cash rates are high.
- Alternative funds have performed better, while providing better diversification compared to past decades.
These are challenging times for advisors with clients looking to put cash to work. The recent ebullience in stocks and uncertainty in both politics and geopolitics might tempt investors to increase exposures to fixed income or stick with cash. But bonds have struggled amid diminishing hopes for aggressive Fed rate cuts;…
