In the last year, we’ve seen a more favorable turn in market conditions for alternative investments. This environment is leading investors to take a more optimistic approach while still keeping an eye out for any changes in the economic climate and how those changes may impact investment options and outcomes. In our third annual survey of self-directed IRA (SDIRA) investors, we learned about the outlooks that they have for a variety of investment categories and their overall strategies in a volatile market. 

Although we have seen some signs of investment market stabilization on the horizon, our investors appear to be staying in a defensive mode in 2023. 84% of investors are saying that “economic conditions” – including factors such as interest rates, inflation, recession, and debt crisis – are a top influence for their overall investment strategy. This is followed quickly by “overall investment risk” at 81% and “stock market volatility” at 75%. These numbers reflect similarly for SDIRA strategies specifically, at 80%, 78%, and 72% respectively.

Investors are leveraging SDIRAs in their retirement journey in a variety of ways. For most investors, it’s all about access – a majority of our survey respondents have told us that they use their SDIRA account to hold certain types of investments that cannot be held in other places. Four out of ten respondents listed gold and precious metals as the primary sector of their SDIRA, while 23% pointed to private equity, and 14% claimed real estate (both directly held and syndicated holdings) as their SDIRA’s primary investment sector. The report also contains investor sentiment data on investing trends – including real estate, mature alternatives, and ESG investments.

For more in-depth insight on alternative investment trends and how SDIRA investors are advancing through this constantly changing market, check out our 2023 Investor Survey Report.