How can liquid alts help combat today’s volatility?

Wealth Professional
May 3, 2022.

The new liquid alternative class is beginning to prove it’s a good diversifier that can reduce portfolio volatility in this uncertain time of war, interest-rate hikes, and inflation, says one proponent.

“Given the war in Ukraine, inflation, slowdown of the economy, and logistic ad supply problems that we’re facing, people are a little bit nervous and looking to find out what other investment solutions we could provide them and, obviously, liquid alts are part of the solution,” Francis Sabourin, portfolio manager and investment advisor at Sabourin Wealth Management with Richardson Wealth in Montreal, told Wealth Professional.

“Your classic portfolio is like a bicycle and, by adding liquid alts to it, you convert your bicycle into a tricycle, so it will be more stable. It’s not necessarily the fastest, but it will be stable, especially these days, when we’re not looking for speed, we’re more looking for comfort.”

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