What Volatility?

It’s September 2015, and while the equity markets have been gyrating all over the dance floor, peer-to-peer returns are marching to the beat of a different drum.


It’s Tuesday, September 1, 2015, and I’m guessing most financial advisors have market volatility on their minds. It was a crazy few weeks… or was it?

It depends on which part of the portfolio you’ve been watching. If you’re looking at stocks, it’s been crazy. Real crazy.

If you’re looking at p2p investments, it’s just steady as she goes. Peer-to-peer returns were consistent this week as they were the last week and the week before that. This is why I love the p2p asset class. It’s a great shock absorber for the ups and downs that we experience in the other areas of our portfolios.

For me, peer-to-peer lending is a fundamental strategy. I’m not likely to experience the dramatic highs that come with an ETF bet on the S&P 500. Nor the dramatic lows.

I’m heavily invested in the p2p asset class in my personal portfolio, which is not necessarily what we recommend for our own clients. But let’s just say that during the last week when volatility was intense, my portfolio was steady.

I’m not bashing the stock markets, or bond investing. But when it comes to volatility, p2p investing is stable, and it acts like a great shock absorber.