The calm amidst the storm

Key takeaways

  • A market downturn has accelerated in the past six weeks, amidst increased macro risks. 
  • Regardless of whether the current market dislocation continues for the foreseeable future, the US remains well placed to attract global investment flows compared to other economic powerhouses.
  • Yieldstreet is committed to offer investors access to potentially higher risk-adjusted returns, no matter the weather.

In the past six weeks, the broader market environment has deteriorated amidst persistent inflation, the Federal Reserve’s decision to frontload rate hikes and sustained geopolitical risk. We understand the current backdrop may be impacting your investment portfolio, and would like to share some thoughts on financial markets, as well as on the steps we are taking to manage your investments. 

The root causes of the current market downturn, which is potentially the early signal of an upcoming economic slowdown and perhaps even a recession, can be traced back to the supply-demand imbalances that were laid bare at the beginning of the year, with the Russia-Ukraine conflict acting as a further catalyst – exacerbating supply-chain disruptions, causing an energy shock and a driving a deterioration in investor sentiment. 

Yet it also cannot be ignored that a large part of the market’s selloff was concentrated in “growthy” tech stocks, a signal of their potential overvaluation, and also – in our view – of the lack of diversification of some existing passive public markets exposure.

All that said, regardless of whether the current market dislocation continues for the foreseeable future, the US is currently well placed to attract global investment flows, given its relative insulation from global economic trends. While other global powerhouses are also suffering, with Europe grappling with energy-driven inflation and China’s zero COVID strategy causing a decisive increase in unemployment, US exceptionalism remains alive and well.

Diversify Your Portfolio Today

During times like these it is crucial for investors to be informed about their portfolios. That is why we have been ramping up investor outreach, to better understand your concerns and find a way to address them, and why we have been increasing the pace of investment updates, to give you more insights on your allocations. 

The good news is that Yieldstreet’s investments are broadly performing well and continue to provide potential for diversification from public markets, as well as potential protection from market risk. In addition, it is worth reminding that compelling investment opportunities tend to emerge in times of market stress. 

Our investment teams have been through multiple cycles, and are committed to selecting investment opportunities they believe can help give investors peace of mind in turbulent times, and higher return potential when public markets stabilize. 

For cautious investors, and for the ones worried about high inflation, Yieldstreet offers short-term notes with a limited lock-up period, an attractive coupon and potential downside protection. For investors with a higher risk-return profile, there are private credit deals and funds, and a brand new venture capital offering

Ultimately, Yieldstreet’s large choice of private market opportunities with different risk-return profiles makes it an attractive platform, irrespective of transient market conditions. 

How helpful is this content?

Share this article:

Join a community of 350,000+ members

  • Gain access to unique offerings previously reserved for the ultra-wealthy

  • Customize your portfolio for income, growth, or a balance of both

  • Get started today and earn an average IRR of over 8%

What investors are saying about Yieldstreet

Apr 2022

The due diligence, risk management, and product education materials are thorough, excellent, and easy to use and understand.

Manoj J
Member since 2019
Apr 2022

Excellent and unique selections that I can't find elsewhere.

Jonathan S
Member since 2019
Apr 2022

The platform delivers in a very concise manner. Easy to get a clear understanding at a glance from the web or mobile app.

Tim S
Member since 2021
The testimonials presented on this page have been provided by actual investors in Yieldstreet funds without compensation. Yieldstreet has selected the testimonials, and certain testimonials have been edited to remove personally identifiable information and for brevity. Testimonials were not selected based on objective or random criteria, but rather were selected based on Yieldstreet's understanding of its relationship with the providers of the testimonials. The uncompensated testimonials presented here may not be representative of other investors' experiences, and there can be no guarantee that investors will experience future performance or success consistent with the testimonials presented.

The Yield

Our weekly podcast providing ideas about how to make money work for you and bring you closer to your dreams.

Since inception, over $2.8B has been invested on Yieldstreet

Join today for free to access alternative investment opportunities.