More and more family offices are looking for alternatives to stocks when it comes uh to putting money to work. And Robert Frank joins us now with more. Hey, Robert.Good morning, Joe. Good to see you. Well, family offices have become the fastest growing market for alternatives and private assets.The number of family offices with exposure to alternative investments has increased by over 500% since 2016. That according to new data from Prequent. Now, the growth outpaced wealth management firms, sovereign wealt ...

Heard on the Street: Despite the opportunity in retirement accounts, fears of slow sales and tight pricing are weighing on private-equity stocks https://t.co/KFuZoUpzYc ...

Market Trend & Policy Impact - President Trump's executive order allows Americans to invest retirement savings in alternative assets like private equity, cryptocurrency, and real estate [1] - The executive order aims to provide retirement savers with more investment opportunities [1] - The order could give these industries access to $12.2 trillion in American retirement savings, with $9 trillion specifically in 401k plans [4][5] Investment Risks & Concerns - Financial experts warn that alternative investments pose higher risks that may outweigh potential rewards [2] - Certified financial planners caution against investing in alternative assets without professional advice, regardless of net worth [5][6][7] - Alternative investments come with higher fees, limited liquidity, and a lack of transparency [9] - Lack of real-time pricing and publicly available information compared to publicly traded companies [10] - Potential difficulty in selling these assets, especially when nearing retirement age [10] - Concerns that investors may not fully understand the risks and impact of these investments [8][9] - Some suggest limiting alternative asset investments to 5% or 10% of retirement savings [12] Investor Protection & Education - Need for free education, awareness, and resources to understand the risks before investing in alternative assets [12] - Importance of free financial advice and increased transparency [13]

Solana's Vision - Solana aims to host every asset and market on a single, globally distributed state machine, synchronized at the speed of light [2] - Solana envisions the emergence of internet capital markets [2] Market Scope - Solana targets a wide array of financial instruments, including stocks, bonds, lending, money markets, foreign exchange, commodities, derivatives, private equity, venture capital, hedge funds, real estate investment trusts, asset-backed securities, municipal bonds, treasury securities, corporate bonds, convertible bonds, preferred stocks, common stocks, options, futures, swaps, credit default swaps, mortgage-backed securities, collateralized debt obligations, exchange-traded funds, mutual funds, index funds, closed-end funds, unit investment trusts, American depositary receipts, global depositary receipts, warrants, rights offerings, initial public offerings, secondary offerings, private placements, repurchase agreements, commercial paper, certificates of deposit, banker's acceptances, Eurodollars, currency forwards, interest rate swaps, equity swaps, total return swaps, structured products, contingent convertible bonds, green bonds, Sukuk, catastrophe bonds, inflation-protected securities, zero-coupon bonds, and floating rate notes [1]

Well, this what we're talking about is the president perhaps giving guidance to the Department of Labor and the Security Exchange Commission about how this could work by putting private market investments into target date funds, into balance funds within a 401k plan. And so this is something that Trump has been signaling he's very interested in since 2020. he sent an information letter out, you know, the Department of Labor under him saying that this could be an additive to 401k plans.Um, the way that it wo ...

Federal Reserve & Interest Rates - Maintaining the Federal Reserve's independence is crucial, as markets react negatively to its perceived lack thereof [1][2] - The current Fed Funds rate of 45% is considered too high, especially with inflation at 25% and GDP growth slowing [3][5] - Lowering rates prematurely could lead to inflation [1] Private Credit Market - Private credit markets are experiencing substantial growth, projected to reach $10 to $15 trillion in a decade, growing at 20% annually [10] - Asset-based lending (ABL) within private credit is still in its early stages but poised for significant expansion [9] - Private equity's growth will drive the expansion of direct lending [8] - Banks are increasingly participating in private credit, buying and selling private loans [11] Banks & Private Credit - Banks are expected to play a significant role in financing debt related to private credit deals [13] - Banks may develop secondary markets to provide liquidity for listed private debt products [15] Democratization of Private Credit - Concerns exist regarding the suitability of private credit investments for retail investors [16] - Private credit offers attractive risk-adjusted returns compared to public equity markets, with historical net returns of 11-12% and half the volatility of the equity market which generates a 7% historical return [17] - Wealth management divisions of major banks vet managers and provide recommendations for private credit investments [19] Tariffs & Inflation - Tariffs have not significantly impacted prices, with exporters and importers absorbing the costs [4]

Concerns Regarding Private Market Assets in 401(k) Plans - Introducing complexity with private equity might not be the best idea for most investors, as many struggle with basic investment principles [3] - There are concerns about the track record of private equity, especially in the current high-interest rate environment [4] - The private equity industry has changed significantly in the last 20 years, and it's unclear if current returns justify its inclusion alongside stocks in retirement accounts [5] - Liquidity and pricing issues are significant concerns, as these assets are not marked to market daily [5] - Transparency is lacking, making it difficult to objectively determine appropriate allocation amounts [11] Considerations for Including Private Market Assets - For young investors with a long-term investment horizon, private equity in a 401(k) might be suitable, but this is the exception, not the rule [6][7] - Private assets may offer greater diversification and non-correlation to a portfolio [8] - Private credit has performed well in recent years, but its future performance is uncertain due to increased competition and changing market conditions [10] Recommendations and Cautions - Investors should master investing in traditional asset classes like large-cap, mid-cap, small-cap, international stocks, and credit before considering alternative assets [13] - Advisors, the public, and everyone should do their homework and wait for more performance data before investing in private market assets [14] - Alternative investments should only be considered for accounts above a certain size [12]