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There Is A Greater Reason – Why All Financial Advisors, Advise A Balanced Portfolio Approach

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The adoption of digital currencies and assets, such as Bitcoin, Ethereum, and security tokens has grown significantly since the start of the pandemic and the growth is expected to continue. Traditional finance investments are also becoming digital which offer known structures backed by assets that have consistent return profiles and calculated risk opportunities. Digital assets are becoming mainstream.

Outside of stable coins, existing tokens come without any protection or government assistance and are known to be volatile. We are looking to offer a modern-day contemporary instrument with an institutional-grade structure, that will carry the attributes of saving first, leverage second, and the option to trade, third – an instrument with a Risk Mitigation strategy. 

Balanced Portfolio Approach

Cryptocurrencies have proven to be volatile. Prior to six months ago, cryptocurrencies weren’t correlated with the transitional equities market; however, they have become so. Therefore, they are not a hedge as believed to be previously. Even stable coins have proven problematic.

The algorithmic stable coin, Terra (UST) lost $400 billion in market capitalization in a matter of days when it crashed in May 2022. The crash was due to huge withdrawals which pushed the coin to lose its dollar peg.

Balanced Portfolio Approach info graphics
Balanced Portfolio Bitcoins and dollars currencies

The market needs portfolio balances within the Digital Asset world. Financial analysts and wealth managers always recommend a balanced portfolio. The typical balance is equity, bonds, cash, and alternative assets. The current world of digital assets provides volatile alternative asset investments. To add a digital asset investment opportunity tied to the value of real-world equity assets would add value to a portfolio. 

 

Our goal is to add wealth preservation to the list of available digital assets. These investments could be principal protected from potential losses while offering upside opportunities in cash flow and appreciation value. Outside of the similar traditional asset, the format of digital assets offers the benefits of transparency, transferability, and instant settlement. 

Disclaimer

This commentary is provided as general information only and is in no way intended as investment advice, investment research, a research report or a recommendation. Any decision to invest or take any other action with respect to the securities discussed in this commentary may involve risks not discussed herein and such decisions should not be based solely on the information contained in this document.

Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed herein are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. GreatOne disclaims any obligation to update or revise any statements or views expressed herein.

In considering any performance information included in this commentary, it should be noted that past performance is not a guarantee of future results and there can be no assurance that future results will be realized. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which information, although believed to be accurate, has not been independently verified. GreatOne and/or certain of its affiliates and/or clients hold and may, in the future, hold a financial interest in securities that are the same as or substantially similar to the securities discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and GreatOne and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities. This commentary has not been reviewed or approved by any regulatory authority and has been prepared without regard to the individual financial circumstances or objectives of persons who may receive it. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

Annelise Asborne

About the Author

Annelise is part of the founding team and Managing Member. She is a board member at the Great One Digital Holdings.Annelise comes with over 20 years of experience in finance, credit, real estate, risk, structuring, governance, and digital assets. Annelise was nominated to the board of Bob Evans (BOBE) and received a recommendation from ISS. She was also nominated to the board of Ethan Allen (ETH). Annelise is active in numerous industry organizations, corporate governance initiatives, and guest lectures at universities including Columbia, NYU, Baruch, William and Mary, and Fundan.

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