Thursday, 24 January 2013
Do You See Alternatives As An Essential Portfolio Addition?
In the past five years, while the stock markets have remained flat overall, alternative investments like hard assets have been delivering constant above-average yields and dependable alternatives for confused investors. This fact has not been lost on many global money managers as they have increased their alternative holdings in their client’s portfolios by as much as 50 per cent and some experts even agree that it doesn't hurt to have even more of a percentage. As a result, the overall returns have been extremely positive and the trend is continuing moving forward into 2013.
One of the main benefits of hard assets is that they are not directly correlated to the stock markets which makes them unaffected by inflationary pressures. In an investment portfolio, they act as a guard against traditional holdings such as stocks and bonds and it increases the odds of an overall positive return at the end of the day. In fact many investors have completely turned away from having any traditional options in their portfolios and have strictly gone the alternative route and many are very satisfied with their results. The days of the traditional investment formula for portfolios no longer apply for the average investor. Many investment-seekers are more educated and they want to, not only alleviate the risk factors, but eliminate them entirely; if they possibly can. One way to do this is to steer clear of risky stocks and bonds. Instead, investors should lean heavily on the alternative options that are making a commitment to investors and have consistently proven their worth in the market, particularly since 2008.