Alternative Investment Strategies - Higher Returns with Less Risk
Alternative investment strategies are more important than ever as investors emerge from the most dramatic market crash of a generation. What was particularly surprising was the precipitous nature of the decline and the fact that so many asset classes declined simultaneously. Investments that were assumed to be loosely correlated or even inversely correlated ended up declining in lockstep throughout 2008 and 2009.
By identifying these unconventional investment opportunities that can truly segregate risk amongst various asset classes, investors can realize historical market returns but incur less risk to their overall portfolio. When the time comes to redeem assets, these holdings with low stock market correlation can provide an opportunity for withdrawal from positions at a profit even when stocks or bonds are declining.
In a single asset class such as stocks, high returns are commensurate with high risk. However, by diversifying into other assets and employing a combination of hedging and alternative investment strategies, an optimal portfolio can be constructed.
Learn Why Gold Investing is Recommended for Virtually Every Portfolio
Real Estate Investment Trusts (REITs)
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