Why Diversify Your Portfolio through Alternative Investments?

Phoenix Capital Group is committed to helping investors build wealth from the ground up through exposure to oil and gas investments. This post is part of an educational series helping investors discover the potential benefits that our 9% to 13% annual yield bond offerings can have on your investment portfolio. You can learn more about the currently available investment opportunities here.

Building your investment portfolio exclusively on the stock market and stock market-correlated indexes can be chaotic and stressful. There are many external factors that can negatively impact your portfolio and erase your hard-earned wealth ranging from consumer demand, interest rates, housing markets, and even geopolitical events. Since these are all beyond the control of investors, many savvy individuals turn towards alternative investments as a strategy to diversify and enhance their portfolios.

What is an Alternative Investment?

Alternative investments are financial assets that fall outside the traditional categories of stocks, bonds, and cash. These investments can include real estate, private equity, hedge funds, energy, venture capital, and even collectibles like wine and art. The appeal of these alternative investments lies in their low correlation with standard market indices and interest rate, making them a potential “hedge” against market volatility.

Why Energy Stands Out in the Alternative Investments Landscape

Among alternative investments, the energy sector, particularly oil and gas, presents a compelling case for investors seeking diversification and higher returns. Energy investments offer a unique blend of growth potential and resilience, often outperforming traditional markets due to the essential nature of energy and its global demand dynamics. Investment strategy thought leaders, like Warren Buffett, have even made energy investments a cornerstone of their investment strategy.

Phoenix Capital Group is a leader in alternative energy investments, providing investors with access to high-quality oil and gas investment opportunities through corporate bond offerings. These types of investments were previously the domain of institutional investors like private equity and venture capital, but are now available to the general public through Regulation A+ and Regulation D 506(c) securities. Phoenix Capital Group investment opportunities are designed to deliver investors with annual returns ranging from 9% to 13%, underpinned by extensive expertise and strategic approach to energy investments. You can learn more about the company’s approach to oil and gas here.

Key Benefits of Investing in Alternatives with Phoenix Capital Group

An additional benefit of alternative investments is their potential for higher returns. Many alternative investments, such as private equity or corporate bond offerings like those at Phoenix Capital Group, have the potential to generate higher returns than traditional investments, such as stocks. This is because these types of investments are often made in companies that are not publicly traded and may have higher growth potential.

Additional benefits to consider include the following:

  1. Longer Hold Periods Unlike traditional investments, which can be sold “intra-day”, alternatives often have the expectation of a longer-term holding period. For example, Phoenix Capital Group’s hold period ranges from 1 year to 11 years.
  2. Rarely Publicly Traded Alternatives are typically not traded on exchanges such as NYSE or NASDAQ. There are still SEC reporting regulations for many alternatives, however, including the Regulation A+ and Regulation D 506(c) securities that have been offered by Phoenix Capital Group.
  3. Sophisticated Diversification Alternatives can provide access to investments otherwise unavailable to retail investors. For example, Phoenix Capital Group’s bonds provide investors with exposure to oil and gas deals that were previously dominated by institutional investment firms.
  4. Opportunity for Larger Gains Some alternatives reward investors with longer hold periods, offering the potential for higher returns on investment that are not available in traditional investments.

It’s important to note that alternative investments can come with their own set of risks and may not be suitable for all investors. It’s important for investors to do their own research and carefully consider their own investment goals and risk tolerance before investing in alternative investments. If you are looking to add direct exposure to oil and gas to your portfolio, ensure that you fully understand these risks and are prepared for the potential outcomes.

Want to Learn More About Investing in Energy?

Join an upcoming investor webinar with Phoenix Capital Group to learn more about investments in oil and gas. The webinar covers the industry, our business model, and our bond offerings with between 9% and 13% annual yield in less than 1 hour.

Investing involves risk, including the possible loss of the money you invest. The sale of any securities is subject to investor qualification and minimum investment. Private placements are speculative and illiquid. Past Performance is not indicative of future results. Important information, disclaimers and risks can be found at PHXOffering.com

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