What Are Non-Correlated Investments? (Part 5)

In this edition of Litigation Investing Mastery, we’ll explain non-correlated investments and why they’re an important part of a diversified investment strategy.

Over the years, we’ve spoken to thousands of busy high-income earning professionals excited to share their investments outside the stock market.

However, very early into these calls, we learned that the majority of their alternative investments are solely in one or more different types of real estate. Is this you?

These investors are often surprised when I explain that the wealthy focus on a diversified and balanced portfolio structure, with roughly only 27% allocated to real estate.

The point of diversification is to protect your wealth from the cyclical nature of any one market.

That means that to be truly diversified, an intentional approach is required to allocate into non-correlated alternative investments that don’t rely on the same economic fundamentals and don’t follow the same cycles.

Commonly Known Non-Correlated Alternatives

Many alternative investments are non-correlated to each other or real estate.

Some common ones include investments in precious metals (e.g., gold), and energy (such as oil and gas). Investments in industries that are still in demand even in recessions are good alternatives as well, examples of these are legal services, health care, education, and more.

Each one is driven by different market fundamentals, follows its own cycle, and has different correlations. For example:

Gold, a “Safe Haven” Precious Metal

• Consistent store of value over time
• Inversely correlated or counter-cyclical to:
  Stocks during crises
  The U.S. dollar

Notice in the graph below how gold (yellow line) tends to oppose the S&P 500 index. When gold is up, the S&P tends to be down, and vice versa. This is because investors tend to buy gold when the stock market is struggling.

Gold vs Stocks

Gold vs Dollar

Ready to Diversify?

Our Diversified Litigation Portfolio offers investors like you exceptional recession-resilient returns from late-stage legal disputes, non-correlated to the volatility of their other investments in stocks, real estate, energy, and others.

This portfolio targets high-value late-stage cases, such as Camp Lejeune water contamination, RoundUp, harmful firefighter foam exposure, and more, ensuring a diverse and robust investment strategy.

Investors benefit from institutional-quality litigation funding that provides high growth while also providing access to justice for those harmed by corporate misconduct.

Join us to diversify your portfolio with non-correlated, high-return investments.

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Projected Returns

Distributions are based on settlements that are projected to start in Year 2, peak in Year 3, and taper in Years 4 and 5

Join us to diversify your portfolio with non-correlated, high-return investments.

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