As tariffs roil the markets and the Trump administration continues to deliver mixed messages as to its ultimate goal, investors are looking for safety and opportunity. Panic is never a good option and individual investors always need to consider their personal situation and timeline. While we cannot predict the future, many believe this too shall pass. Of course, until an element of stability is introduced into markets, all bets are off.
One Fintech executive sees opportunity in private markets during the chaos. Noting that public markets bedlam has now moved to private markets, Michael Aldridge, President and CRO of Accelex, believes that as some rush to the exit to gain liquidity, there may be a positive element.
“Secondaries have provided a lifeline, granting investors the ability to exit early in a market where assets are normally tied up for years, while enabling savvy buyers to ‘buy the dip’ and snap up bargains,” said Aldridge. “Data is the lifeblood of investment decisions, and the turmoil of the past week has been a stark reminder that private markets remain deeply opaque. In private markets, buyers often don’t have a clear view of what they’re purchasing, and sellers struggle to get a full view of their positions and exposure due to data problems, making it difficult to ensure they’re selling the right assets at the right price. This becomes even more challenging when the stakes are as high and the situation is as urgent as they have been this week.”
Aldridge states that to ensure they’re ready for any market shock and unforeseen liquidity demands, data is needed to ensure they have the tools to make a good decision. Still, for some, it is just about the need to free up cash.
So while some are selling, others are buying, contingent on price. At some point, markets will bottom, but predicting this event is more guesswork than anything else.