While stocks and bonds remain the cornerstones of most retirement portfolios, allocating a portion of your investments to alternative asset classes can provide diversification benefits and opportunities for higher returns. The ultra-wealthy understand this well, with high-net-worth individuals allocating between 30-50% of their portfolios to alternative investments. Alternative investments encompass a broad range of asset…
Alternative investments refer to assets that fall outside the traditional categories of stocks, bonds, and cash. As investors seek to diversify beyond just stocks and bonds, alternatives have grown increasingly popular for their return potential, diversification benefits, and inflation-hedging abilities. This guide provides an in-depth overview of major alternative investment types that investors should consider….
Alternative investments are assets and financial instruments that fall outside the conventional categories of stocks, bonds, and cash. As opposed to traditional investments, alternative investments are often complex products that lack liquidity and carry much higher risk. However, they also tend to have low correlations with traditional assets, providing portfolio diversification benefits. With stock and…