The Modern Day Portfolio for Everyday Investors

Category
Company
Written by
The Sweater Team
Published on
January 7, 2022

The retail investor revolution is booming, and it’s just the beginning. We’ve seen a massive increase in investing from individual investors over the last decade, exploding in the last few years. You can’t  ignore the recent momentum caused by social media, meme stocks and crypto trading, but more so it’s the ease and access to more asset classes that have really swung the door wide open.

It’s estimated that retail investors accounted for 23% of all US equity trading in 2021, and according to Credit Suisse, they hit a third of all US stock trading multiple times during the year. And that’s just the public market.

Whether seizing on the opportunity of a rapidly growing market or on a mission to level the playing field for all investors (or both), fintech companies have started opening the market to alternative asset classes.

Alternative Asset Classes

The rise and popularity of free stock trading apps from companies like Robinhood and Webull have primed the market for alternative options. Six million Americans downloaded a trading app just in the month of January 2021.

Right now you can download apps that allow you, the average, everyday investor to invest into commercial real estate, art, hedge funds, and even farmland. These are all previously very exclusive asset classes, reserved for the super wealthy and well-connected.

Every year, more of these asset classes enter the market along with accompanying educational content geared towards more equitable and attainable financial literacy. While helping you invest into these new asset classes, these firms are arming you with the language and understanding to speak about these new investments in your portfolio.

According to Seema Amble of renowned VC firm Andreesen Horowitz:

In 2021 and beyond, we’ll see more of these alternative asset classes become available and accessible to the mainstream investor. Tech platforms will develop innovative ways to educate new investors through content and community-based learning, and as a result, we’ll see more investors with smaller checkbooks start investing in new asset classes.

The Private Equity Asset Class

It’s estimated over $100 billion every year is lost to gambling in the US.

It’s crazy that in 2021, anyone could walk into a casino and gamble away their life savings over the flip of a card, but that same person couldn’t invest that money into venture capital or startups on the private market…unless they were accredited, of course.

We’re not saying that better access to private equity will cure gambling addiction. And yes, with equity crowdfunding, there have been ways in recent years for anyone to buy shares of a startup, but there are still many limitations and restrictions to equity crowdfunding opportunities.

What we are saying is that if anyone can dump their savings onto a roulette table or even into the volatile crypto market with ease, then venture capital should be fair game.

And now it is with Sweater.

As the first fully-managed venture capital fund for everyone, we’re bringing broad, private market access to every investor, accredited or not. We’re redefining venture capital and writing the next 20 years of venture.

We believe the entire retail investing world will be on its head in the next 10 years, and the portfolio of the average investor will be diversified through a wide variety of consumer-focused investing applications. And we also believe private equity will help lead the way.

The Modern Portfolio

The modern portfolio for everyday investors is starting to look more and more like the portfolios of the super wealthy and elite half a century ago—art, real estate, commodities, private equity, collectibles—the list goes on.

The most interesting thing about your investing portfolio today is access to more options for diversification. Gone are the 60/40 days. Gone are the days of needing a personal financial advisor to navigate unknown waters.

The whole point of investing is to make your money work for you. You now have the power, technology, and resources to educate yourself and invest into new asset classes. You now can invest your money where your personal interests and values align, and alternative asset classes create more wealth-building options and opportunities.

When thinking about your financial future and how to diversify your portfolio so it works best for you, there are now a lot more options than 10 years ago. Do your research, educate yourself on the growing market of alternative investments, and if you’re interested in learning more about Sweater and the first venture capital fund for everyone, join the waitlist.

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Disclosure: Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. The prospectus contains this and other information about the Fund and can be obtained by calling 1-888-577-7987 or by visiting the Fund’s website at www.sweaterventures.com/cashmerefund. Please read the prospectus carefully before investing. All investments involve risks, and past performance is no guarantee of future results.