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Alternative Investments - What Are They?

Alternative Investments - What Are They?

| May 23, 2019

An alternative investment* is an asset that is not one of the traditional known types, such as stocks, bonds and cash. Types of alternative investments include private equity, hedge funds, managed futures, real estate and derivatives contract.

During periods when the economy is facing a decline, or interest rates are low, it may be effective to consider alternative strategies that seek opportunities to generate results similar to bonds. Various management styles and strategies such as long/short, arbitrage, and managed futures can help prepare for market downturns.

Alternative assets offer exposure beyond the traditional equity portion of your portfolio. This gives you the opportunity to further diversify, because alternative assets typically perform well in inflationary environments. When preparing for any market cycle, it's important to consider evolving portfolios by adding alternative assets.

For more information about alternative investments and without any obligation consultation call us or e-mail us 800-560-1988

*Investors should understand that investing in strategies that are non-correlated to the stock and bond markets are not without risk. There can be no assurance that alternative investments will be profitable and will even outperform asset classes correlated to the stock and bond markets. These strategies are not suitable for all investors. Investors should be aware that alternative investments may be subject to certain fees, create taxable events, may be illiquid as well as the fact that no secondary market may exist.