Research and Insights
Strategies to Navigate Volatility in Portfolio Investments
Consider the external factors that affect investment markets and the inherent value of your portfolio:
- Inflation and higher interest rates erode the real power of your investment assets
- Geopolitical tensions create uncertainty in all areas of the global economy
- Environmental and climate-related disasters are increasingly common
- The global COVID-19 pandemic continues to disrupt the supply chain and impose uncertainty in aspects of the global economy.
Our clients rely on our team's research, analysis, and insights to diversify investment portfolios and to stay ahead of downward pressure on portfolio value. In particular, our teams work with clients to:
- Implement flexible investment strategies that focus on short-term opportunities, floating rate debt products, and cash that helps to reduce exposure to volatility
- Adjust the balance of assets in investment portfolios to reflect income-generating investments and stocks that have a history of paying regular dividends in turbulent markets
- Explore alternate investments, including private equity opportunities
- Offset potential losses with option strategies that can deliver profits in bear markets
- Draw cash liquidity out of the locked-in value of equity investments, and leverage that value to multiply wealth.
Call the private wealth advisors at Medici Global Capital for personalized strategies on how you can retain value and enhance your wealth in volatile investment markets.
Understanding the Hidden Liquidity in Your Investment Portfolio
Liquid assets share a few common features:
- They are readily converted into cash with no tax or other fiscal penalties
- They are openly bought and sold on public markets throughout the trading day
- They are regularly traded above minimum trading volumes such that price volatility is minimized
From the perspective of an individual investor, liquidity facilitates opportunities to make new investments, pay down outstanding debts, and procure personal assets while allowing the investor to preserve and grow overall net worth.
Traditional liquidity strategies involve selling securities in the public markets. The wealth advisors at Medici Global Capital assist the firm's clients in drawing cash liquidity out of their portfolios with loan facilities and debt structures that are secured by liquid assets. Investment and commercial banks have implemented analogous liquidity strategies for more than thirty years. The strategy that Medici developed for individual investors adapts the best practices from commercial and investment bank liquidity programs into a simplified loan structure that gives investors access to the cash value of their portfolios without forcing them to cede total ownership and control of portfolio assets.
Regardless of market volatility and economic conditions, every wealth management plan should include simple mechanisms for drawing liquid cash out of investment assets to address unanticipated liabilities and sudden investment opportunities. Call Medici Global Capital for more information on how our advisors can help you leverage the hidden value of your portfolio with our novel lending liquidity program.
Using an Investment Policy Statement to Manage Decisions About Your Portfolio
Medici Global Capital’s independent wealth consultants work with our clients to verify that their financial plans remain on track to serve the client’s goals. Those plans are never static, but change in response to the client’s individual circumstances and prevailing economic conditions.
We advise clients to alter financial plans only if changes are thoroughly vetted and made with objective input rather than in response to emotional turmoil. When our independent contract consultants advise clients on the creation and management of a wealth management plan, they first recommend that the client should make a commitment to objective management because individuals are more likely to act in accordance with commitments that they have made and internalized.
Investors can make a commitment to objective decision-making by executing an investment policy statement (IPS) that establishes a clear path for meeting their financial objectives while also reflecting their risk tolerance and personal investment preferences on matters such as sustainable and responsible investment choices.
The investor’s IPS acts as a business plan that removes emotion from the decision-making process and objectively connects your capital to your goals. The IPS also removes any whimsical ideas that may lead to irrational decision-making based on market timing, recommendations or tips from colleagues, or news about the markets and geopolitics. A well-crafted IPS will also eliminate the temptation to make daily decisions about investment portfolios.
Please call the wealth management team at Medici Global Capital if you are interested in learning how an IPS can serve your investment strategies and the kinds of investment decisions that an ISP can help you make.
Business Continuity Planning
Business owners do not control the external environment and the constant challenges that it poses for their businesses. They can only plan for and adapt to challenges as they present themselves. A Business Continuity Plan (BCP) is the critical component in that planning process.
The best BCP will prepare your business for multiple risks and options possibilities, but it will only work if you document it thoroughly and confirm that essential parties in your business are familiar with it.
The business and institutional wealth planning consultants who work in concert with Medici Global Capital recommend that every BCP address a few common matters: