With 2026 a little over a month away, advisors may wish to take this time to reposition their portfolios to potentially benefit from what the new year may bring. Alternative investments have already gained plenty of traction in 2025, and things may very well be the same for 2026. However, it’s crucial to evaluate which kind of alternative investments could provide a more potent use case than others.
Gold Is Still Glittering
One of the alternative investments that is certainly worth keeping an eye on is gold. The price of gold has already seen immense momentum in the last few months, and it could very well stay the course heading into the new year.
This is due to the gold rally being powered by a variety of different factors. A weaker U.S. dollar and stronger inflationary pressures have historically tended to lead gold prices on a positive path.
Dollar doubts and inflation concerns aren’t the only things boosting gold values, either. Recent interest rate cuts from the Federal Reserve have cut into Treasury yields, leading many toward gold as a store of value.
Looking ahead to the new year, many of these favorable factors are still likely going to be in play. Worries about inflation aren’t going away any time soon, and some experts are projecting a weaker dollar for 2026. Furthermore, more rate cuts could be on the docket, at least in the early part of the new year. All of these factors are continuing to buoy gold’s value as an alternative investment.
Critical Minerals Powered by U.S. Policy
Gold isn’t the only mineral that works as a compelling alternative investment, either. Critical minerals are also benefiting from conditions that are making them more attractive buys, as well.
Back in October, the Financial Times reported that the United States is looking to stockpile up to $1 billion in critical minerals. According to the Financial Times, this would be done to counter China’s dominance over the industry.
It should go without saying that this potential buying spree could prove to be very favorable for advisors who are exposed to the critical minerals industry. Massive amounts of spending on critical minerals could lead to increased demand, thus increasing prices and overall value.
That’s not the only potential favorable piece of policy, either. Also in October, Treasury Secretary Scott Bessent told CNBC that the Trump administration intends to set price floors on a number of different industries, including critical minerals, to amplify competition with China. Much like the reported stockpile, a price floor on critical minerals could prove to be significantly beneficial to the critical minerals industry heading into 2026 and possibly beyond.
Powering Your Portfolio With Infrastructure
Minerals aren’t the only alternative investments that advisors should be keeping a close eye on, either. Much like gold, the infrastructure sector tends to be in a better position than other sectors regarding navigating inflation. This is due to a number of reasons.
To begin, infrastructure assets tend to be viewed as essential services, even during severe bouts of inflation. As such, infrastructure companies and providers have an easier time passing on higher costs to their consumers than other traditional equity companies.
Furthermore, infrastructure companies tend to be known for their stable cash flows. This can prove to be especially fortuitous during bouts of macroeconomic uncertainty, where the additional yield can help advisor portfolios stay afloat amid rising costs.
These are just a few alternative investment strategies that could potentially pay off in the new year. There are plenty of other strategies that advisors might want to consider as well, such as REITs and private equity, but these three strategies showcase how ongoing macro conditions can favor advisors who want to look outside of traditional equity and fixed income funds.
Originally published on Advisor Perspective
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