Alternative investments now constitute 60% of single-family office portfolios, marking the first time they have surpassed traditional assets for the world's wealthiest individuals.
This shift, reported by BNY Wealth, indicates a growing preference among the super-rich for non-traditional asset classes. Alternative investments typically include private equity, hedge funds, real estate, and commodities, which can offer diversification, potentially higher returns, or inflation hedging compared to stocks and bonds. This trend suggests that high-net-worth investors may be seeking different avenues for wealth preservation and growth amidst evolving market conditions and economic uncertainties.
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