Alternative Assets to Bank on During Volatile Market Conditions

Published on October 7, 2026

In general, self-directed investors worry less about stock market swings, since the alternative assets allowed in self-directed IRAs are not correlated with market performance. In fact, investing in alternative assets through a self-directed IRA builds a hedge against such market volatility and inflation, with the potential for lucrative earnings in a tax-advantaged retirement plan.

So, what happens to self-directed retirement portfolios when the market experiences volatility? That depends on the investments.

The benefits of investing in alternative assets through a self-directed IRA

1 – Alternative assets’ performance is not tied to the stock & bond markets; that low correlation to typical Wall Street investments means self-directed investors don’t experience the roller coaster ride that more traditional investments (stocks, bonds, T-bills, etc.) deliver.

2 – Account owners can include hard assets or alternative markets within their self-directed IRA (SDIRA), which also provide a hedge against inflation as well as market risk with assets that are generally long term and illiquid. This is beneficial because inflation erodes buying power and asset value.

3 – Savvy investors who know and understand nontraditional investments enjoy portfolio diversification with assets that maintain their intrinsic value during market downturns, and many provide steady passive income regardless of what’s happening on the stock market.

4 – Plus, self-directed investors make all their own investment decisions and can take control of their retirement savings strategy with greater responsiveness than traditional investors with retirement plans at banks and brokerage firms.

Assets that historically perform well during market swings

The list of alternative assets allowed through self-direction is long. These assets offer the potential for robust returns over time or deliver ongoing passive income, regardless of stock market conditions. Their longer lifespan (compared to stock activity) enables investors to avoid the short-term volatility associated with market downturns or periods of high inflation.

Examples of hard assets allowed in a SDIRA

• Real estate – all classes of real estate, from vacation/rental properties to multifamily, commercial and industrial properties, raw land and farmland
• Precious metals – gold, sterling silver, palladium coins and bullion
• Commodities – agricultural and energy assets such as crops, timberland, livestock, mineral rights, oil and gas infrastructure, mining
• Equipment/machinery leases
• Vehicles, fleets
• Cryptocurrency, digital assets (such as NFTs and trademarks)
• Energy, digital, and transportation infrastructure

Examples of alternative market investments in SDIRAs

• Royalties – music, theatrical pieces, film & TV assets
• Private notes, unsecured and secured loans
• Tax liens
• Private equity funding, venture capital, angel investing
• Factoring investments
• Structured settlements

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At Next Generation Trust Company, we offer client education about the many options and benefits of self-direction as a retirement wealth-building strategy, including webinars, which you can view here. If you’d like to be informed of our events before they happen, sign up for our newsletter and follow us on LinkedIn.