What Are Alternative Investments (And Why They Matter Now)
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August 29, 2025
Alternative Investments
Why smart portfolios are shifting away from the traditional 60/40 model.
As of August 2025, leading financial institutions like BlackRock and J.P. Morgan have echoed a major shift: investors are fleeing traditional 60/40 portfolios and increasingly adopting alternatives. Why? Because traditional markets are no longer predictable. In 2022 and 2023, stocks and bonds both fell simultaneously—a breakdown of a decades-old diversification model.
Alternative investments are assets that operate outside of public equity markets, such as:
- Private real estate
- Private credit
- Infrastructure
- Venture capital
- Commodities
According to BlackRock’s Midyear Global Outlook (2025), institutional investors now allocate an average of 25–30% of their portfolios to alternatives. This is a move designed to hedge volatility, secure income, and gain access to niche, recession-resilient assets—like healthcare real estate.
Stocks Are Volatile. Alternatives Add Stability.
The S&P 500 posted a 17% gain in 2024—but also saw three drawdowns of more than 10% within the year. Meanwhile, core commercial real estate assets backed by essential services (like medical offices) delivered steady quarterly yields of 6–8% with far less price fluctuation.
Platforms like Fund Momentum provide access to:
- Tangible, income-producing properties
- Lower correlation to stock market swings
- Long-term cash flow via stabilized healthcare leases
Morningstar’s 2025 Market Pulse states: “Alternatives will be the core, not the edge, of diversified portfolios by 2026.”
How to Diversify with Real Assets Even as a First-Time Investor
Through Regulation CF and D offerings, Fund Momentum allows investors of all types to access institutional-quality real estate. Whether you’re a seasoned investor or just getting started:
- Reg CF lets non-accredited investors participate with minimums as low as $1,000.
- Reg D is designed for accredited investors seeking larger placements with potentially higher returns.
With a user-friendly dashboard, automated reporting, and regular deal flow updates, you can build a diversified real asset portfolio with confidence.
“The smartest portfolios in 2025 are no longer public-only. They are anchored in tangible, purpose-aligned assets with stable cash flow.” —Fund Momentum Strategy Memo
