2020 has been a topsy-turvy year so far. Stock markets have crashed and rebounded sharply, bonds have held firm and gained, diversifying virtually all the risks of stocks, commodities and real estate have diverged sharply within their subclasses, and alternative investments have soared. Yet, despite all the hype about alternative investments in digital technologies such as blockchain, artificial intelligence, data analytics, 2020 has shown that the traditional asset classes of stocks, bonds, and real estate are still the best ways to invest, even for High Net Worth Individuals (HNWIs).
Although investors reaching a higher level of net worth or wealth usually have a slew of alternative investments offered to these HNWIs by banks and advisors eager to profit from their business, nothing has made fortunes faster than investments in listed stocks, and nothing has been safer in times of a crisis than bonds and physical real estate. There truly isn’t a real need to invest outside of these asset classes for