Research

Portfolio diversification during the COVID 19 crisis: Preventing income shortfalls with avocado orchards

The 2020 crisis pulled market valuations, corporate earnings, and dividends apart. This piece examines that dislocation and where real assets sat against it.

May 16, 2020 · 1 min read · AVO Oro Verde

Line chart titled Avocados vs. WTI during the COVID 19 crisis, tracking both from January to May 2020 indexed to 100. The avocado line climbs to 155 while the WTI line falls to 33, dipping below zero in late April.

The COVID-19 crisis exposed significant vulnerabilities in traditional income-generating assets and highlighted the growing disconnect between market valuations, corporate earnings, and dividend stability. In this environment, portfolio diversification became a critical priority for investors seeking to preserve returns and establish dependable sources of income. This article examines that dislocation and evaluates the role of real assets, particularly avocado orchards, as a resilient complement to public-market exposure. It outlines how these assets performed during the crisis and why their structural characteristics position them as a compelling alternative for investors navigating periods of heightened volatility and dividend disruption.