There are more ways to invest than just in the traditional stocks and bonds market. Sometimes, thinking outside the box can unlock untapped potential for investors and offer ways to diversify one's portfolio and protect against volatility. Modearn™ advisors Kevin Rex and CEO Jeff Sarti discuss creative investments that offer opportunities for growth through emerging or niche markets.
Here are some key takeaways from their conversation:
- Lowercase "c" creative investments like Bitcoin are now mainstream, while uppercase "C" creative investments are still niche and less crowded.
- Real estate can be creative depending on the approach, such as focusing on niche sectors like healthcare or storage during market dislocations.
- Morton Wealth advocates for private credit as a creative investment avenue, lending to businesses and individuals with tangible collateral, providing stock-like returns but with less volatility.
- Modern investors are often distrustful of traditional institutions, fueled by political and economic uncertainty, inflation concerns, and fears around money-printing.
- Creative investments often involve more work and expertise, particularly in assessing risk through due diligence on operational, structural, and collateral factors.
- Jeff and Kevin urge investors to consider adding more international stocks to their portfolio, with a preferred mix of two-thirds U.S. stocks and one-third international to take advantage of global opportunities and mitigate U.S. market overvaluation.
