Alternative Investments in Times of Geopolitical Uncertainty

In a global environment marked by persistent conflicts (Middle East, Ukraine-Russia), trade tensions between major powers, and reconfigurations of the world order, geopolitical uncertainty dominates the markets. Traditional assets—stocks and bonds—tend to correlate during times of stress, losing their diversifying power. This is where alternative investments become relevant: assets with low or no correlation to public markets, which act as safe havens or generators of returns during crises.

During 2025, a year of high volatility, these alternatives stood out by preserving capital or delivering positive returns while stock market indices corrected. Asset managers such as J.P. Morgan and Goldman Sachs indicate that alternative assets (private equity, private credit, real estate, hedge funds, commodities) already represent close to 20% of many portfolios, especially among younger investors.

Their main advantage lies in three pillars:

• Protection against inflation and fiat currency devaluation.

• • Generating alternative income in uncertain interest rate environments.

• Effective diversification when stocks and bonds move in the same direction.

Top Alternatives in 2025-2026

1. Gold and Precious Metals
   Gold solidified its position as the classic safe haven: it rose more than 50% in 2025, exceeding $4,000/ounce at various points, driven by record purchases by emerging market central banks and aversion to geopolitical risk.

2. Commodities
   Oil, gas, industrial metals (copper, nickel), and agricultural commodities benefit from supply chain disruptions, sanctions, and the reorientation of global trade, acting as a natural hedge against conflicts.

3. Private Real Estate
   Physical properties or private vehicles offer rental income and inflation protection. Resilient segments (logistics, data centers, select residential) held up well despite interest rate sensitivity.

4. Private Credit and Private Equity
   Private credit delivers higher returns than government bonds through active and selective strategies. Private equity and macro/volatility hedge funds capitalize on sharp movements in currencies, bonds, or commodities.

5. Other
   Art, collectibles, and, to a lesser extent, crypto assets (seen by some as “digital gold”) offer very low correlation, although with higher volatility.

Final Considerations

These investments typically involve lower liquidity, high fees, and long investment horizons. They do not replace a balanced portfolio but rather complement it. In 2026, with geopolitics as the dominant systemic risk, combining gold, commodities, and private strategies with traditional assets remains key to protecting and growing wealth. Uncertainty persists, but well-prepared investors transform it into opportunity.

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