Private Investments
Diversification
Public markets and the economy are cyclical and highly correlated when you need diversification most. Stocks, regardless of domicile, sector, or industry, all move in the same direction when volatility and liquidity events occur. The Tariff Tantrum in 2025 and the COVID Pandemic in 2020 are recent examples. There are times though, such as the Federal Reserve’s tightening cycle in 2022, when even bonds do not offer sufficient diversification.
At Culbreth Wealth Management, we pay close attention to diversification because these types of risk events can upset a financial plan and put to test one’s risk tolerance. It is why at times in our portfolios we allocate to commodities, real estate, mining and metals, rare earths, AMLPs and other publicly traded alternatives.
However for accredited investors, investors with over $1,000,000 net worth excluding the home or over $300,000 annual income for couples ($200,000 for an individual), private markets investments can provide enhanced diversification beyond what public markets offer.
CWM curates select direct private investments that have been through significant due diligence. These are not multi-billion dollar feeder funds where it is nearly impossible to know exactly what you own. The direct private investments that CWM offers have niche business models with attractive risk/return profiles that complement core allocations to public markets. The business models have gone to great lengths to mitigate risks while having the potential for attractive targeted returns1. If you invest in private markets, it should not only target an attractive return, but it should also help with diversification.
Want to learn more about the direct private investments that CWM offers?
1 Private investments can be illiquid and have a high degree of risk, including the potential loss of invested capital. Investors should carefully review risk disclosures and liquidity needs before investing.
