As part of Yieldstreet’s partnership as the official alternative investment platform of the New York Giants, we wanted to kick off the regular season with a few gameplans to potentially help your portfolio – regardless of your investment goals – this fall and beyond. While your portfolio may not have had the summer off, diligent investors this fall can quarterback their portfolio to success. Here’s a few of the top strategies you might consider in the second half of the year to position yourself for a deep run in retirement and beyond.
Just as you shouldn’t try to pass the ball every down, you probably want to diversify your portfolio’s vehicles for achieving your investing goals beyond the stock market. It’s ideal for investors to explore opportunities beyond ETFs and the public markets to ensure that in the event of a financial downturn, their portfolio has some potential protection. Alternative asset classes like art and real estate that are usually less correlated with the stock market, may suit your needs.
2.Remember to look downfield
Don’t just look for short little dump off opportunities, and instead consider investments with slightly longer time horizons. Having access to your money to deploy or pull out at the drop of a stock may seem enticing, but it often leaves investors to face behavior biases, and can cause an over flurry of activity. Investments with longer time horizons on the other hand protect investors from making irrational short term decisions. Moreover, investors often deal with an illiquidity premium, and can seek higher yields for having their money deployed for longer periods of time.
3. Don’t leave your cash waiting to play on the sidelines.
If your cash is sitting on the sidelines, it could cost you the chance to score big. While it may be tempting during periods of volatility to keep more cash on hand, inflation can eat away at your savings and reduce your purchasing power. Even short term notes and other short-term opportunities can enable investors to earn against the backdrop inflation and avoid seeing their portfolio potentially decline or get out-earned. When it comes to investing, inaction is action.
4. The best defense is a good offense
If you’re worried about being caught in market volatility, consider a product like structured notes that allows investors to take on less risk while still having potential to earn quarterly coupons. Investors who don’t want to deal with the anxiety and volatility associated with equities can still find ways to put their portfolio to work. Remember that the only thing a preventive approach does – is prevent you from benefitting.
5) Championships are won through practice and due-diligence
More than any single investment or offering you decide to partake in, a well-balanced portfolio to meet your investing goals depends on doing the necessary research in advance to make sure you understand how your portfolio can appreciate and potentially protect your nest egg. Varying the mix of asset classes held within a portfolio can help accomplish this. Traditional portfolio asset allocation envisages a 60% public stock and 40% fixed income allocation. However, a more balanced 60/20/20 or 50/30/20 split, incorporating alternative assets, may make a portfolio less sensitive to public market short-term swings. That way, regardless of the opponent you’re up against, your portfolio can be primed to perform.
As the football season kicks off, and fall is officially underway, make sure that you’re taking the steps necessary to meet your investment goals into 2023 and beyond. Learn more about the ways Yieldstreet can help diversify and grow portfolios.
Yieldstreet provides access to alternative investments previously reserved only for institutions and the ultra-wealthy. Our mission is to help millions of people generate $3 billion of income outside the traditional public markets by 2025. We are committed to making financial products more inclusive by creating a modern investment portfolio.