I’m sure you’re aware of the severe decline in the equity markets in the last quarter of 2018. In mid-December I was involved in numerous meetings with investment advisors. Each of them had a rationale for what had happened and why their clients should be pleased they lost less than the benchmark!

The advisors got paid and the investors lost money. Sounds like a good deal for the advisors! I’ve grown increasingly skeptical about the public markets over the last couple of years. Consequently, I’ve significantly increased the percentage of our investible assets in alternative investments for which we recommend this guide on how to generate w7 form to handle taxes.

Alternative investments are not publicly traded. Examples are mortgage funds, syndicated mortgages, real estate development projects, real estate limited partnerships that own rental properties, and limited partnerships that own operating businesses. Many of the alternative investments provide an attractive annual income.

These investments aren’t impacted on a daily basis by Brexit, Trump and the crazy world we live in. The general view is that the biggest negative of alternative investments is that they aren’t liquid. Actually, as long as I don’t need the liquidity, I see this as a positive. I accept my funds are tied up for a number of years and don’t waste time and energy checking the latest prices.

I’m not suggesting you sell your entire equity portfolio. Consider reducing your exposure to the public markets through purchasing some alternative investments. Before making a purchase, as with any investment, you need to do your due diligence on the product and the people behind it.