For the foreseeable future, we anticipate dramatic increases in both risk and volatility, particularly when it comes to traditional asset classes. As a result, “alternative investments” are expected to increase substantially as high net worth investors seek new ways to diversify their portfolios and minimize exposure to stock market volatility.

The term “alternative investments” includes any investment that is insulated from fluctuations in the bond or equities markets; these can include private debt, private equity, hedge funds, and real estate, and they can act as a hedge to help protect principal against downside risk in the broader market.

Private debt, such as non-agency mortgages or unsecured loans, is one type of alternative investment. Unsecured debt (such as corporate paper) can provide important diversification to a portfolio — but it comes with risks of its own, since they aren’t secured with any hard assets.

Mortgages or Trust Deed Investments, on the other hand, can provide investors with a short-term, fixed-income alternative — while still offering the protection afforded by being secured to a hard asset. DeBellis Financial for example, pursues this strategy by identifying Trust Deeds in first and second lien position that are secured by California investment properties and income producing real estate. In addition to offering an opportunity to invest in an asset class that is removed from the fluctuations of the stock and bond markets, these investments are not sensitive to interest rate changes and seeks to protect investors’ principal against downside risk through lower loan-to-value ratios on California Real Estate Assets.

Here are some quotes from media outlets:

Next Big Pitch: Alternative Investments

“The narrative for alternative investments is about to change, claims Michael Spellacy, global wealth management leader at PwC’s asset management practice, a unit selling consulting services to wealth managers. He anticipates the sector growing 11.2% per year until 2020, which, if true, would make it a $15.3 trillion industry over the next four years.”
– Barrons

Alternative Investment Allocations Should Increase In 2017 Across The Board Due To Market Uncertainty

“With the Dow breaking 20,000 investors are happy with stock related investments, which generally are long the market. But the market won’t go up forever, consistently, there will be pullbacks, sell offs – that’s how markets work. Even with the Fed’s quantitative easing program, a Dow that goes straight up is not healthy. But of course, everyone is happy with Dow 20,000.”
– SeekingAlpha

Contact us today to see if California Trust Deed investments are right for your Portfolio.