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Stock impact report

Amid stock trading turmoil, private markets not necessarily an easy alternative [Advisor.ca (Canada)]

Morningstar, Inc. (MORN) 
Company Research Source: Advisor.ca
As stock markets, gold, housing and other key assets come under pressure, it's tempting to look for investments that might offset declines. Financial companies have increasingly been pushing private equity and credit as options that used to be out of reach for mom-and-pop investors, billed as a way to hedge against market swings while offering the potential of higher returns. But growing rumbles in the segment have revealed what some say are clear drawbacks for retail investors, as losses in private assets have forced some firms to halt withdrawals and raised questions on the stated value of their holdings. “There are real concerns,” said Amy Arnott, a portfolio strategist at Morningstar Inc. “There has been a lot of aggressive marketing to individuals encouraging them to get exposure to private equity and private credit, and we are seeing some cracks emerge.” Those cracks have included some very public bankruptcies in U.S. private markets, including auto parts supplier Fir Show less Read more
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