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Trends with Benefits #108: Alternative Investment Allocation with Joe Taiber

October 24, 2023

Listen Time 34:52

Understand the different types of alternative investments and how to approach them in a portfolio in the context of the broader economy.

This episode is all about alternative investments as I am joined by Joe Taiber, Founder and CEO of Taiko, an independent investment consulting firm. We discuss various alternative investments, including private credit, hedge funds, and real estate. Additionally, we cover what makes these attractive given the current market environment and what factors to consider when allocating to these in a portfolio, such as liquidity needs and risk appetite. Lastly, Joe shares his economic outlook and his take on interest rates.


Show Notes:

01:57 Overview of Taiko

06:00 Upcoming investment trends

09:58 Private credit

11:03 Headwinds for funding for alternatives

14:36 Hedge funds

18:08 Areas in alternatives

20:10 Real estate

21:22 Approaching asset allocation to alternatives

25:48 Broad economic outlook and interest rates

31:11 Long-term trend

33:00 Trend or fad

Trend or Fad

Listen for Joe’s views on hybrid work, buying T-bills, crypto, electric vehicles, and artificial intelligence.

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IMPORTANT DISCLOSURES

Please note that Van Eck may offer investment products that invest in the asset class(es) discussed in this video.

The views and opinions expressed are those of the speaker and are current as of the video’s posting date, and are not necessarily those of VanEck or its other employees. Video commentaries are general in nature and should not be construed as investment advice. References to specific securities and their issuers or sectors are for illustrative purposes only. This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data.

The S&P 500 Index consists of 500 widely held common stocks covering the leading industries of the U.S. economy.

A prospective private fund investor should only commit to such an investment if he or she understands the nature of the investment and can bear the economic risk of the investment. Private investments are often highly speculative and typically involve a significant degree of risk, volatility and illiquidity. A prospective investor should thoroughly review the private placement memorandum (PPM) and all offering documents carefully and consider whether the investment is suitable to the investor’s financial situation and goals.

There are inherent risks with equity investing. These risks include, but are not limited to stock market, manager, or investment style. Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices.

There are inherent risks with fixed income investing. These risks may include interest rate, call, credit, market, inflation, government policy, liquidity, or junk bond. When interest rates rise, bond prices fall. This risk is heightened with investments in longer duration fixed-income securities and during periods when prevailing interest rates are low or negative.

Investing in cryptocurrencies comes with a number of risks, including volatile market price swings or flash crashes, market manipulation, and cybersecurity risks. In addition, cryptocurrency markets and exchanges are not regulated with the same controls or customer protections available in equity, option, futures, or foreign exchange investing. There is no assurance that a person who accepts a cryptocurrency as payment today will continue to do so in the future.

All investing is subject to risk, including the possible loss of the money you invest. As with any investment strategy, there is no guarantee that investment objectives will be met and investors may lose money. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future performance.

No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of Van Eck Securities Corporation.

© 2023 Van Eck Associates Corporation.

666 Third Avenue, New York, NY 10017.

IMPORTANT DISCLOSURES

Please note that Van Eck may offer investment products that invest in the asset class(es) discussed in this video.

The views and opinions expressed are those of the speaker and are current as of the video’s posting date, and are not necessarily those of VanEck or its other employees. Video commentaries are general in nature and should not be construed as investment advice. References to specific securities and their issuers or sectors are for illustrative purposes only. This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data.

The S&P 500 Index consists of 500 widely held common stocks covering the leading industries of the U.S. economy.

A prospective private fund investor should only commit to such an investment if he or she understands the nature of the investment and can bear the economic risk of the investment. Private investments are often highly speculative and typically involve a significant degree of risk, volatility and illiquidity. A prospective investor should thoroughly review the private placement memorandum (PPM) and all offering documents carefully and consider whether the investment is suitable to the investor’s financial situation and goals.

There are inherent risks with equity investing. These risks include, but are not limited to stock market, manager, or investment style. Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices.

There are inherent risks with fixed income investing. These risks may include interest rate, call, credit, market, inflation, government policy, liquidity, or junk bond. When interest rates rise, bond prices fall. This risk is heightened with investments in longer duration fixed-income securities and during periods when prevailing interest rates are low or negative.

Investing in cryptocurrencies comes with a number of risks, including volatile market price swings or flash crashes, market manipulation, and cybersecurity risks. In addition, cryptocurrency markets and exchanges are not regulated with the same controls or customer protections available in equity, option, futures, or foreign exchange investing. There is no assurance that a person who accepts a cryptocurrency as payment today will continue to do so in the future.

All investing is subject to risk, including the possible loss of the money you invest. As with any investment strategy, there is no guarantee that investment objectives will be met and investors may lose money. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future performance.

No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of Van Eck Securities Corporation.

© 2023 Van Eck Associates Corporation.

666 Third Avenue, New York, NY 10017.