Wednesday, 26 September 2012
Investors Seek Alternative Investments to Ease Uncertainty
Once upon a time, it was a simple process to make an investment. If you had extra money and wanted it to grow, then you went to an investment broker, who adopted a traditional investment strategy of investing; with your hard-earned investment principle. They were trusted to know what was best for their client, because (at the time) they were seen as the professionals or experts. On the other hand, alternative investments were always branded as risky, and as such; made up a very small percentage of most portfolios. However nowadays, with economic uncertainty and apprehension toward the traditional methods of investing, like real estate, currency, stocks and heavily traded commodities; investors are seeking alternatives.
In Canada for example, a recent survey of public pension plans revealed that almost 50 percent of them, will be increasing their alternative holdings; in the coming year. This is up from the same survey the year before, when just over 20 percent said they would boost their level of exposure; to alternative investments. This translates to a 150 percent increase, in just one year. This changing trend is not only happening in Canada, but all over the world, as well.
With so much uncertainty in the world of traditional investments, private investors have been left with no other choice, but to look to alternative investing options; to satisfy their own needs. Thankfully, there are many alternative investments available in the market, that offer investors the opportunity to enjoy healthy returns, with limited or manageable risk to their principle; or long-term profits.
Labels:
investing
Location:
United Kingdom
Subscribe to:
Post Comments (Atom)
I think every investor should have at least some allocation to alternative investments in their portfolio. Certainly some form of access to commodities is a good idea. There may also be selective opportunities in property, although it would have to be in places where there have been big drops already such as in Spain. One idea to keep in mind is that if a country like Greece or Spain leaves the Eurozone, their return to old currencies like the Pesata will provide investors the opportunity of a life time.
ReplyDeletealternative investments