In today’s information-overloaded world, it’s easy to feel overwhelmed by the constant barrage of financial advice – much of which can be misleading or outright incorrect. Financial Detox cuts through that noise, providing clear, actionable insights to help you make better financial decisions and avoid common pitfalls.

In times of heightened market uncertainty, it’s natural for clients to ask, “Is there a better way to weather this?” The volatility we’re seeing in 2025 – driven by policy speculation, inflation concerns, and global tension – has understandably prompted many to revisit the makeup of their portfolios.

One increasingly important piece of that conversation: alternatives.

At IDA Wealth, we believe alternative investments are not just trendy buzzwords – they’re tools. Thoughtfully selected and properly implemented, alternatives can enhance diversification, reduce volatility, and introduce unique return streams not available through traditional stocks and bonds.

What Do We Mean by “Alternatives”?

In the simplest terms, alternatives refer to any asset class that falls outside the traditional definition of equities and fixed income. Common examples include:

• Private credit
• Private equity
• Real estate
• Hedge fund strategies
• Infrastructure
• Commodities

Each of these carries unique risk and liquidity profiles, but they all share one common trait: low correlation to traditional asset classes.

This becomes especially valuable when stocks and bonds move in tandem – as they did during parts of 2022 and are beginning to again.

Why Alternatives Matter in 2025

We are in a market environment where the traditional 60/40 portfolio – long considered the cornerstone of balanced investing – is being reexamined. Rising interest rates, geopolitical shocks, and inflationary undercurrents have reminded investors that both stocks and bonds can decline at the same time.

This is where alternatives step in. Properly selected, they can:

• Act as a volatility buffer, softening portfolio swings
• Offer return streams that are not tied to daily market sentiment
• Provide exposure to real assets – such as private real estate or infrastructure – that may benefit from inflationary pressures
• Introduce income-generating strategies, such as private credit, that may outperform traditional bonds in a rising rate environment

This is not about abandoning core holdings. It’s about complementing them – adding tools to the toolbox.

What to Consider Before Allocating

We approach alternatives the same way we approach every investment decision: with intention and diligence.

Some alternatives may be illiquid for years. Others may be more volatile or opaque in structure. That’s why we thoroughly evaluate:

• Liquidity constraints
• Transparency of strategy
• Manager track record and alignment
• Fee structure and net return potential

We also ensure that any exposure to alternatives aligns with your personal risk tolerance, goals, and cash flow needs. Alternatives are not a fit for every portfolio – but for many of our high-net-worth clients, they can provide a meaningful edge over time.

Bringing It All Together

Alternative investments are not about chasing performance or escaping volatility. They’re about building resilient portfolios. They’re about recognizing that no single asset class can do it all – especially in a world that changes by the headline.

At IDA Wealth, we remain measured and methodical in how we use alternatives. Not because they’re immune to risk – but because, when implemented properly, they offer a strategic complement to the core of a well-built plan.

Alternatives enhance risk/return metrics

If you have questions about how alternatives may fit into your strategy – or simply want to better understand the options available – we welcome the conversation.

This is a time for clarity, not complexity. A time to lean on structure, not speculation.

And as always, we’re here to help you navigate it – with perspective, patience, and purpose.