As the new year begins, Fred Hubler makes the case for using it as a checkpoint to review your portfolio and investment strategy, particularly when it comes to alternative investments, arguing that reflection brings clarity even when plans and outcomes don’t match up.
He highlights two key areas to review. First, analyzing what worked: evaluating whether a strategy can be repeated in 2025, and checking whether your allocation has grown too large relative to other holdings. Hubler notes the general rule of maintaining a 20% allocation to your liquid net worth in alternatives overall, with individual investments ideally in the 1-10% range, unless a higher allocation is diversified. Second, analyzing what didn’t work: he points to investments tied to multi-family properties, which saw significant value declines when the Fed raised interest rates faster than expected, but suggests that if the underlying demand thesis still holds, the current dip could actually be a good time to add more.
Key takeaway – a simple year-end gut-check (what worked, what didn’t, and whether your allocations still make sense) can set the tone for how you approach alternative investments in 2025.
Catch the full breakdown here: Financial Fresh Start.