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Survey Says: Investment Strategies Are Shifting Towards Private Credit

The stock market is burning red hot these days, which has many investors wondering: If a market correction happens, where can we ride out the storm? 

A Bloomberg survey¹ reveals that many institutions now prefer private credit over bonds to hedge against economic downturns. 

Why? T. Rowe Price data² suggests that allocating 10% to private credit historically reduces volatility and improves risk-adjusted returns. 

But this ‘safe haven’ asset class isn’t just for Blackstone, KKR, and Morgan Stanley–now, everyday investors can diversify with private credit using Percent. 

• Low minimums: Start with $500

• Shorter durations: Maturity in 6-36 months (average ~9 months)

• Monthly cash flow: Most deals offer cash flow through monthly interest payments.

• Return potential: Percent boasts a net return over 14% in the last 12 months as of Q1 2024

Sign up with Percent and get a bonus of up to $500 with your first investment.*

Market Updates

Alternative investments continue to grow in popularity among younger generations. The 2024 Bank of America Study of Wealthy Americans found that 53% of people between the ages of 21-43 with $3 million or more in assets invest in alts, compared to just 26% of those over age 44. The wealthier the person, the further they lean into alternatives, regardless of age. Additionally, 94% of Gen Z and Millennials expressed an interest in collectibles, while only 57% of Boomers did. For art, the trend was similar, with 83% of those under age 44 expressing interest and only 34% of those over age 44 showing interest. Alternative assets are unquestionably going more mainstream, and will continue to be an standard part of investment portfolios in the future.

OpenAI’s former chief scientist is founding a safety-focused AI startup. Ilya Sutskever, who left OpenAI as a result of a dispute with founder Sam Altman, announced the formation of Safe Superintelligence Inc. (SSI), which will develop a “safe” AI system. Sutskever has been vocal about Altman’s disregard for safety processes, and this new company is a pretty clear shot across the bow of the world’s biggest AI startup. Given the widespread security concerns many have with AI, a company that directly addresses those concerns could quickly grow into a powerful force within the industry.

Sotheby’s is continuing to sell the largest private wine collection ever auctioned. The collection of billionaire Pierre Chen, estimated to contain 25,000 bottles worth over $50 million, has been split into numerous lots going to auction this year. The first ever single-owner champagne-only auction was held yesterday in Paris, as demand for the bubbly beverage continues to grow. Sotheby’s reports that the value and volume of champagne sold tripled between 2022 and 2023. Next up from the Chen collection is a Burgundy-only sale to take place next month.

Bitcoin hit a one-month low and has fallen 10% in the past two weeks. This comes amid a broader sell-off in the market, as numerous altcoins have also seen declining values, including Solana (-12% in the past week), Dogecoin (-13%) and Shiba Inu (-16%). Some of this may be in response to recent inflation data and high interest rates, but this is a reminder that the crypto markets are highly volatile and short-term price movements like this are the norm.

📝 Top Stories

• A new stamp record: As expected, the rare 1868 Blue One-Cent Z-Grill stamp broke the record for the most expensive single U.S. stamp in history when it sold for $4.366 million.

• CAIS cutting fees: The alternative investment platform that works with financial advisers is lowering its fees by as much as 75% in order to “truly democratize alternative investments.”

• Steve Cohen targeting AI: The billionaire hedge fund giant is aiming to raise a $1 billion fund to invest into AI and AI-related hardware, in yet another sign of the current boom and the volatility that might lie ahead.

⚾ Collectibles

🪙 Crypto

🏡 Real Estate

🚀 Venture Capital