Private Market Investment Strategy in 2023

Looking back at 2022, the market has been impacted by a range of factors, including the Russia-Ukraine war, supply chain disruptions, geopolitical tensions, and pandemic lockdowns. As a result, the economy has shown signs of recession due to rising interest rates. In this challenging environment, the performance of stocks, bonds, and cryptocurrencies has been poor. However, as the global economy stabilizes and the pandemic's grip eases, with inflation and interest rates subsiding, what should investors consider for their strategy in 2023? Here's the view based on our observation and analysis:

International trade and China market are expected to rebound

Two major international events, the U.S. midterm elections and the 20th National Congress of the Communist Party of China, have concluded, and international tensions have eased. As the pandemic situation improves and countries including China reopen, the easing of pandemic restrictions should boost the recovery of the global economy and international trade. Additionally, the recovery of the Chinese market could boost the technology sector, particularly companies that rely heavily on Chinese consumers, which has driven GDP growth in recent years; investors may consider companies such as ByteDance, parent company of Douyin, and Xiaohongshu.

The real estate market remains stable

The real estate market has been relatively stable over the past year, with assets such as logistics centers and medical centers showing steady growth. As the economy recovers, it could be worth watching the performance of these assets in 2023. Additionally, with China's lockdown easing, international trade is expected to pick up, leading to strong demand for infrastructure that facilitates it. As a result, high-quality private infrastructure fund products could be a good investment focus next year.

Private credit funds stay strong

The rising rate environment in the past year has benefited private credit funds. While interest rates are expected to peak in Q1 2023, there is no sign of a sharp decline in the short term. As a result, private debt funds are expected to continue performing well in 2023. These funds have multiple sources of income beyond just interest on loans, and their holistic strategies, such as leverage, help balance income and risk. Even if interest rates fall later on, the impact on the income statement will likely be minimal.

After a year of market volatility, many investors are turning to the private market for less volatility and a longer term stable source of income. Altive has made it easier for investors to access the private market by breaking down barriers with technology, allowing them to invest as little as US$10,000. This enables professional investors to move beyond traditional products like stocks and bonds and not have to constantly monitor the stock market.