CRYPTOCURRENCY UPDATES: WHAT ARE THE BEST FINANCIAL ASSETS TO INVEST IN?

WHAT ARE THE BEST FINANCIAL ASSETS TO INVEST IN
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WHAT ARE THE BEST FINANCIAL ASSETS TO INVEST IN? EXPERTS IN FINANCE AND FERVENT INVESTORS WEIGH IN.

WHAT ARE THE BEST FINANCIAL ASSETS TO INVEST IN?

THIS IS THE THIRD OF FOUR ROUND-TABLE DISCUSSIONS ON ASSET CLASS EVOLUTION THAT ARE BEING HOSTED BY INTERNATIONAL INSURANCE BROKER IPG HOWDEN AND THE PEAK.

WHAT ARE THE BEST FINANCIAL ASSETS TO INVEST IN
WHAT ARE THE BEST FINANCIAL ASSETS TO INVEST IN?

WHAT WOULD YOU DO IF YOU AWOKE ONE MORNING TO DISCOVER THAT ALL OF YOUR TRADING ACCOUNTS AND BANK ACCOUNTS WERE GONE? THE QUESTION WAS POSED AT THE BEGINNING OF THE FUTURE OF MONEY: THE EVOLUTION OF ASSET CLASSES, AN IPG HOWDEN AND THE PEAK FUTURE-READY SESSION.

“THAT ELIMINATES EVERY BANK LOANS AND FINANCIAL RISK.” KEVIN TAN, AN EXPERIENCED WATCH COLLECTOR AND EXECUTIVE VICE PRESIDENT OF A FINANCIAL AND COMMODITIES COMPANY, LAUGHED AND SAID, “I MIGHT BE HAPPIER.” PUTTING JOKES ASIDE, SURVIVAL MODE TAKES OVER IN THE FINANCIAL EQUIVALENT OF A ZOMBIE APOCALYPSE. TO PLAN FOR YOUR SURVIVAL AND REVIVAL, IT MAKES SENSE TO FIRST DETERMINE HOW MUCH CASH OR CASH EQUIVALENT YOU HAVE ON HAND, INCLUDING ILLIQUID ASSETS LIKE WATCHES AND ART.

NICOLAS MONROY, DIRECTOR FOR SOUTHEAST ASIA, CULT WINES, NOTED THAT A CATASTROPHIC FINANCIAL COLLAPSE WOULD BRING SOCIETY BACK TO THE DAYS OF EXCHANGING TANGIBLE GOODS AND SERVICES FOR OTHER GOODS AND SERVICES.

THE GOOD NEWS, HE CONTINUED, “WOULD BE THAT MY FINE WINE PORTFOLIO, AS A PURE COMMODITY, WOULD HAVE PROTECTED A GOOD PORTION OF MY WEALTH.

CO-HOST VINCENT LEE, SENIOR VICE-PRESIDENT AND HEAD OF MALAYSIA AT IPG HOWDEN, WHO HAS MORE THAN 20 YEARS OF EXPERIENCE ASSISTING CLIENTS WITH INTERGENERATIONAL WEALTH TRANSFER AND LIQUIDITY PLANNING, RESPONDED, PEOPLE ARE CONSTANTLY FOCUSED ON PURSUING THE ALPHA, THUS ONE IS FORCED TO PAUSE AND THINK ABOUT THE QUESTION. HOWEVER, THINGS CAN GO WRONG OR IN THE WRONG DIRECTION. IN ADDITION TO CREATING A FORWARD VALUE THAT IS CERTAIN WITH INSURANCE, DEFENSIVE ALLOCATION CAN OFFER PROTECTION.

UTILIZING TECHNOLOGY TO ENCOURAGE INVESTMENT:

WHAT IS REGARDED AS THE LARGEST WAVE OF MARKET DEMOCRATIZATION IN MODERN TIMES IS DRIVEN BY ADVANCES IN TECHNOLOGY, QUICKLY EMERGING INVESTMENT VEHICLES, AND A GROWING (AND DIVERSE) GLOBAL INVESTOR BASE.

AI – POWERED ADVISORS, FRACTIONALIZED REAL ESTATE BUSINESS, AND FUND RAISING PLATFORMS HAVE ALL BECOME REALITY DUE TO TECHNOLOGY. IT’S A GOOD TREND THAT’S MAKING THINGS SIMPLER AND MORE TRANSPARENT FOR THE GENERAL PUBLIC. WITH THE EMERGENCE OF CRYPTOCURRENCIES, NFTS, AND THE METAVERSE DRIVEN BY BLOCKCHAIN TECHNOLOGY, WE HAVE ALSO WITNESSED NEW WEALTH CREATION AND VALUE CAPTURE, WHETHER THROUGH INVESTMENTS, NEW JOBS, OR EVEN ESTABLISHING NEW ENTERPRISES. NOTABLE BLOCKLASS AUTHOR BELINDA LIM: THE CAN-READ GUIDE FOR BEGINNERS — BLOCKLASS. 

“TECHNOLOGY, HOWEVER, IS ONLY A TOOL USED BY HUMANS AND IS SUSCEPTIBLE TO HUMAN FLAWS. WE’VE SEEN HOW ERRONEOUS FAITH IN SYSTEMS LIKE [CRYPTO LENDER] CELSIUS HAS ALSO LED TO ENORMOUS LOSSES GLOBALLY. THERE IS ALSO THE CHANCE OF HACKING DIRECTED AT THE EMERGING FINTECH COMPANIES DUE TO THE CONSOLIDATION OF IMPORTANT ASSETS ON ONE PLATFORM.” SHE ADDED.

WITH A GOAL TO MAKE THE USE OF WEB3 SIMPLER, LIM CO-FOUNDED THE ADVANCED SECURITY-ENABLED WALLET AVARTA IN 2021. FOR ITS IDENTITY PROOFING AND AUTHENTICATION SERVICES, AVARTA USES FACIAL RECOGNITION. THE COMPANY IS ALSO DEVELOPING A TRUST SCORING SYSTEM SO THAT USERS CAN CONDUCT TRANSACTIONS WITHOUT HAVING TO PERSONALLY KNOW THE OTHER PARTY.

ACCORDING TO CO-FOUNDER AND CEO OF THE ALTERNATIVE ASSETS MARKETPLACE PLATFORM FUNDNEL, KELVIN LEE, “THE AIM OF FINTECH HAS ALWAYS BEEN TO DEMOCRATIZE AND IMPROVE ACCESS TO FINANCIAL SERVICES AND OFFERS. THE FIRST DIGITAL WHISKY-BASED TOKEN IN SOUTH-EAST ASIA WAS ALSO RELEASED BY FUNDNEL.” ALTHOUGH I DON’T HAVE A CRYSTAL BALL INTO THE FUTURE, I DO THINK THAT THE IDEA OF MONEY AND WEALTH WILL PROBABLY BE TURNED ON ITS HEAD, BRINGING MORE VARIED, UNIQUE, AND SOPHISTICATED OPPORTUNITIES.

FUNDNEL, WHICH WAS ESTABLISHED IN 2016, HAS REAL ASSETS SUCH AS ARTWORK, WINE, AND REAL ESTATE LISTED. ADDITIONALLY, ITS INVESTOR COMMUNITY HAS TAKEN PART IN PRIVATE EQUITY TRANSACTIONS INVOLVING SPACEX, GOJEK, GRAB, BUKALAPAL, AND TOP-TIER FUNDS FROM TOP PRIVATE EQUITY AND VENTURE CAPITAL FIRMS.

HELPING EARLY-STAGE INVESTORS, FOUNDERS, AND FOUNDING STAFF MAKE MONEY OFF OF THEIR HOLDINGS IS ANOTHER AREA ON WHICH LEE AND HIS TEAM ARE FOCUSING MORE AND MORE. THIS “ENABLES THE BEGINNING OF A POSITIVE CYCLE IN WHICH CAPITAL THAT WOULD OTHERWISE BE LOCKED UP IS BROUGHT TO SUPPORT A NEW GENERATION OF START-UPS,” ACCORDING TO THE AUTHOR. WE ALSO PROVIDE NEW INVESTORS WITH OPPORTUNITIES TO CONTRIBUTE CAPITAL TO ESTABLISHED BUSINESSES, MANY OF WHICH ARE AVOIDING PUBLIC MARKETS.

INVESTORS’ PREFERENCES:

WHAT EXACT INVESTMENTS ARE THE WEALTHY MAKING TODAY?

IN ORDER TO HELP ULTRA-HIGH NET WORTH INDIVIDUALS CREATE THEIR FINANCIAL LEGACIES, KENNETH TAN, MANAGING DIRECTOR AND MARKET HEAD AT A PRIVATE BANK, SHARED KNOWLEDGE FROM HIS EXPERIENCE WORKING WITH THEM. THE MAJORITY OF OUR CLIENTS ARE DIVERSIFIED, AND THEY PLAN THEIR ASSET ALLOCATION PERCENTAGES WITH HELP FROM THEIR BANKERS OR FAMILY OFFICE EXPERTS.

ASIAN CLIENTS TYPICALLY INVEST IN DISCRETIONARY MANDATES WITH AN ASIAN SLANT BECAUSE “THEY VIEW US AS SPECIALISTS IN ASIA,” WHEREAS INTERNATIONAL CLIENTS TYPICALLY INVEST IN PROPERTIES AS THE MAJORITY OF THEIR TOTAL NET WORTH.  INVESTMENTS IN PRIVATE EQUITY ARE ALSO INCREASING. HOWEVER, TAN CLAIMS THAT THE NEXT GENERATION OF INVESTORS HAS A DIFFERENT PERSPECTIVE ON ASSET CLASSES AND FAVORS VIRTUAL MONEY AND NFTS.

I TRY TO DIVERSIFY MY RISKS BY AVOIDING FINANCIAL MARKETS BECAUSE I WORK IN A BANK, WHICH HELPS ME MAINTAIN A HEALTHY PORTFOLIO. AS A RESULT, MY WEIGHTING IN FINANCIAL ASSETS IS LOWER THAN IT IS IN NON-FINANCIAL ASSETS, SUCH AS YIELD PLAY PRODUCTS AND ETFS. INVESTMENTS IN THE LONG-TIME WINE ENTHUSIAST’S LATTER HAVE INCLUDED PROPERTIES AND ALTERNATIVE INVESTMENTS RELATED TO FINE WINE AND COGNAC.

DUE TO THEIR LOW CORRELATION WITH OTHER FINANCIAL ASSETS, LUXURY COLLECTIBLES LIKE FINE WINE, FINE ART, FINE WATCHES, AND FINE HANDBAGS OFFER SIGNIFICANT DIVERSIFICATION BENEFITS.

ACCORDING TO THE MOST RECENT CREDIT SUISSE COLLECTIBLES REPORT, A NUMBER OF COLLECTIBLES HAD A REMARKABLE YEAR IN 2021 AS A RESULT OF THE OPENING OF ECONOMIES. DESPITE THE AMBIGUITY, MACROECONOMIC CHANGES, AND GEOPOLITICAL UPHEAVAL IN 2022, COLLECTIBLES HAD A PROMISING BEGINNING.

ACCORDING TO MONROY OF CULT WINES, WHICH OVERSEES $440 MILLION IN ASSETS AND CREATES CUSTOM WINE PORTFOLIOS FOR INVESTORS, A FINE WINE PORTFOLIO IS “TELLING AS A LONG-TERM SAVINGS METHOD” AND CAN GENERATE EQUITY-LIKE RETURNS WITH A THIRD OF THE VOLATILITY. 

WHILE THE FIRST WAVE WAS OLDER, MORE KNOWLEDGEABLE ABOUT WINE, AND HAD MORE RESOURCES, HE EXPLAINED THAT THANKS TO TECHNOLOGY-ENABLED DATA AGGREGATION AND ANALYSIS AND THE ESTABLISHMENT OF TRUSTED MARKETPLACES, GEN X, MILLENNIALS, AND EVEN GEN Z WERE INCREASINGLY ENTERING THE SPACE.

THE SAME IS TRUE FOR COLLECTIBLES AS IT IS FOR FINANCIAL ASSETS. WHILE FINE ART IS MORE OF A CAPITAL GROWTH ASSET WITH HIGHER AVERAGE RETURNS BUT ALSO HIGHER VOLATILITY, WATCHES AND JEWELRY ARE TRADITIONAL STORES OF VALUE WITH LOWER VOLATILITY THAN WINE.

ARE INVESTMENTS MOTIVATED BY PRAGMATISM OR BY PASSION?

IN CONTRAST TO STOCKS OR PRECIOUS METALS, WATCHES FALL INTO THE FUN CATEGORY OF STORES OF VALUE. WEARING THEM, FLAUNTING THEM, ESTABLISHING YOURSELF AS A SOCIAL MEDIA PERSONALITY, AND MEETING OTHER ARDENT COLLECTORS ARE ALL OPTIONS. IN CONTRAST TO OTHER “FUNS” LIKE WINE OR CARS, THEY ARE ALSO RELATIVELY SIMPLE TO MAINTAIN AND STORE, ACCORDING TO KEVIN TAN, AN INSTAGRAM USER AND MODERATOR OF THE WELL-KNOWN WATCH FORUM WATCHPROSITE.

“WATCHES CAN BE A GREAT INVESTMENT CLASS IF YOU BUY SENSIBLY, SUCH AS AT A OFFER, OR IF YOU BUY RENOWNED WATCHES LIKE ROLEX AND PATEK PHILIPPE WHERE NEED IS KNOWN TO BE MORE THAN SUPPLY, OR IF YOU HAVE AN ACCURATE FORECAST ABOUT NEXT FAMOUS WATCH.” THE LAST PLAY IS SPECULATIVE, WHILE THE FIRST TWO ARE DEFENSIVE PLAYS.

A. LANGE & SÖHNE DATOGRAPH AND JAEGER-LECOULTRE REVERSO GYROTOURBILLON ARE JUST A COUPLE OF THE COVETED TIMEPIECES IN TAN’S EXTENSIVE COLLECTION, WHICH HE STARTED AMASSING WHEN HE WAS ONLY 16 AND NOW NUMBERS AROUND 1,000. I COLLECT ANYTHING THAT APPEALS TO ME AND IS SIGNIFICANT OR RELEVANT TO HOROLOGY, HE SAID.

COLLECTORS OF FINE ART CONTINUE TO FAVOR WELL-KNOWN FIGURES LIKE MARC CHAGALL, BERNARD BUFFET, AND KEITH HARING AS WELL AS CLASSIC BLUE-CHIP INVESTMENTS. STÉPHANE LE PELLETIER, ASIA PACIFIC DIRECTOR OF OPERA GALLERY, WHICH HAS 13 GALLERIES WORLDWIDE, NOTED THAT THERE IS CONCURRENTLY RISING INTEREST IN UP-AND-COMING AND YOUNGER ARTISTS.

“YOUNGER COLLECTORS ARE NOW MORE PREVALENT IN THE ART MARKET, SO THE DEMOGRAPHIC OF COLLECTORS HAS SLIGHTLY CHANGED. THE WORKS THAT CAPTURE THE SPIRIT OF THE GENERATION INFLUENCE THEIR TASTE IN ART. RECORD-BREAKING SALES OF CONTEMPORARY ART ARE EVIDENCE THAT IT HAS LIMITLESS POTENTIAL TO ACCOMPLISH THAT.

LE PELLETIER, WHO WAS ALSO A COLLECTOR, SUGGESTED THAT ANY INVESTMENT IN ART SHOULD BE MOTIVATED BY LOVE AND AWE. ONCE YOU OWN A WORK OF ART THAT YOU CANNOT LIVE WITHOUT, YOU REALIZE THAT THE RETURN ON INVESTMENT AND INCREASE IN MARKET VALUE ARE JUST BONUSES, THE ICING ON THE CAKE. “EVEN THOUGH THE TWO INVARIABLY INTERSECT, WE THINK THAT HUMAN VALUE COMES BEFORE FINANCIAL VALUE.”

IT GOES WITHOUT SAYING THAT ART WILL ALWAYS BE VALUABLE AND HAS BEEN SINCE THE HELLENISTIC ERA.

IPG HOWDEN’S VINCENT LEE CONCLUDED THE DISCUSSION BY SAYING, “THE POSSESSIONS THAT PEOPLE OWN AND ACQUIRE CHANGE WITH TIME, JUST LIKE TECHNOLOGY.” ADDITIONALLY, WE ARE NOTICING AN INCREASE IN HNW CLIENTS WHO INCLUDE INSURANCE OPTIONS IN THEIR OVERALL ASSET ALLOCATION. THEY ENJOY THEM BECAUSE THEY ARE UNRELATED TO THE MARKET, CAN GENERATE A CLEAR FORWARD VALUE, AND ACCUMULATE CASH VALUE WHILE EXERTING A MULTIPLIER EFFECT. TO BUILD AND PROTECT WEALTH FOR THEIR OFFSPRING AND FUTURE GENERATIONS, USE THIS STRAIGHTFORWARD STRATEGY.

MAINTAINING WEALTH AND SAFEGUARDING LEGACY:

LIFE INSURANCE IS STILL A WELL-LIKED FINANCIAL TOOL AMONG AFFLUENT INVESTORS LOOKING TO DIVERSIFY THEIR PORTFOLIO AND STRENGTHEN THEIR FINANCIAL STABILITY DURING MARKET VOLATILITY BECAUSE IT IS AN ASSET CLASS WITH LOW CORRELATIONS TO THE MARKETS.

BY SUPPLYING THE REQUIRED LIQUIDITY THROUGH THE USE OF INTERNATIONALLY SOURCED INSURANCE SOLUTIONS, IPG HOWDEN CAN ASSIST HNW INDIVIDUALS AND FAMILIES IN PRESERVING THEIR WEALTH AND PROTECTING THEIR LEGACIES SO THEY CAN BE BETTER PREPARED FOR THE FUTURE.

CONCLUSION ON WHAT ARE THE BEST FINANCIAL ASSETS TO INVEST IN?

TO CONCLUDE WHAT ARE THE BEST FINANCIAL ASSETS TO INVEST IN, THE ABOVE MENTION ASSETS ARE EXPERTS OPINION, BUT YOU DO A DEEP RESEARCH AND INVEST. 

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CRYPTOCURRENCY UPDATES: WHAT ARE THE BEST FINANCIAL ASSETS TO INVEST IN?

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