How will Covid-19/Coronavirus Affect my Alternative Investment Portfolio? (Part 3: My Strategy)

Updated: Feb 8

Having examining the possible virus scenarios and effects on the economy, we now dive into what they might mean for alternative investments. Plus, my personal investment strategy.

(Usual disclaimer: I'm just an investor expressing my personal opinion and not a registered financial advisor, attorney or accountant. Consult your own financial professionals before making any financial decisions. (Code of Ethics: I/we do not accept any money from any sponsor or platform for anything, including postings, reviews, referring investors, affiliate leads or advertising. Nor do we negotiate special terms for ourselves in the club above what we negotiate for the benefit of members.).

Quick Summary

In part 1 of the series, we talked about the coronavirus that causes Covid-19 and what we do and don't know about it. In part 2, we talked about 4 possible scenarios and what they might mean for different sectors of the economy. Now in this, part 3, we'll talk about what this may mean to different alternative investment asset classes (real estate, litigation finance, life settlements, music royalties and medical royalties). And then we'll talk about my own personal investment strategy going forward.

By the way, this is one article in a multi-part series that has been published weekly since the pandemic began back in March 2020. The series started with three introductory articles on the virus, effect on the economy and alternative investment classes. And then it moved on to weekly updates on the latest and greatest developments (along with weekly updates on my evolving personal portfolio strategy). You can see the links to every article in the series here.

Real Estate Gloaters

After the public market meltdown, many real estate sponsors sent out updates to investors on their Covid mitigation strategies. But there were a few who took a different tactic and instead sent out gloating emails. Their argument was that other markets crashed, while their own investment opportunity didn't, and so people should be sending investment dollars their way.