Diversification is a core principle of smart financial planning. While traditional assets like stocks and bonds are essential, alternative investments offer added stability and growth potential. Brad Ball, founder of Bison Wealth, stresses the importance of these investments to reduce risk and create new opportunities.

The Role of Alternative Investments in Portfolio Diversification

Alternative investments include private equity, real estate, hedge funds, commodities, and venture capital. Unlike stocks and bonds, these assets have lower market correlation, helping to protect portfolios from volatility.

Brad Ball uses alternative investments to:

Reduce risk by including assets that don’t move with the stock market.

Enhance returns through opportunities unavailable in public markets.

Generate steady income from real estate and private credit.

Preserve capital for long-term wealth protection.

How Alternative Investments Provide Downside Protection

These investments help hedge against downturns. During stock market declines, gold, real estate, and private debt offer stability. While private equity and venture capital carry risk, they also provide high-growth potential that isn’t tied to daily market shifts.

For advisors, integrating alternative investments protects client wealth and demonstrates forward-thinking strategy in an evolving market.

How Firms Can Stand Out with Alternative Investments

Offering alternative investment strategies sets firms apart. Clients seek access to private markets, hedge funds, and impact investing. Providing these options attracts high-net-worth individuals looking for customized strategies.

These insights are inspired by the latest episode of The Connected Advisor podcast featuring Jessica Gibbs, Partner and VP at Monument Wealth Management. Dive deeper into how aligning financial strategies with personal goals redefines wealth management. Listen to the full episode here and explore more articles in this series.