Emerging markets, especially China, will then look for
alternative asset classes not so beholden to central bank - controlled monetary policies.
Not exact matches
Everybody is familiar with traditional
asset classes, such as stocks and bonds, but
not everyone is as familiar with
alternative and... Read More
As I continue to build more wealth I am planning to pursue other diversification opportunities (those mysterious
assets and
alternative classes the wealthy may or may
not make money on!).
By adding
alternative asset classes, we can enhance diversification by selecting exposure to factors that don't typically come from a traditional balanced portfolio of stocks and bonds.
Not only can you diversify across
asset classes by purchasing stocks, bonds, and cash
alternatives, you can also diversify within a single
asset class.
Real - estate and commodities don't look too good and I don't think the amount invested is high enough to justify diversifying through those
alternative asset classes.
Another theme in the book as I see it, is that
alternative asset classes are
not as rewarding as they seem.
If you have
not considered adding managed futures to the overall
assets of the family office, now may be an opportune time to learn more about this
alternative asset class that can potentially decrease volatility in a well balanced portfolio.
Cash also is considered an
asset class, and includes
not only currency but cash
alternatives such as money market instruments (for example, very short - term loans).
I don't own any of these names personally and I have tended to avoid
alternative asset classes.
Everybody is familiar with traditional
asset classes, such as stocks and bonds, but
not everyone is as familiar with
alternative and... Read More
Real Estate is commonly considered an
alternative asset class because it doesn't have the long history that cash, bonds and stocks do.
Commodities are more of a pure trading
asset class than stocks and bonds, given they are
not cash - producing or yield - generating
assets, but can rather be thought of as
alternative currencies subject to their own supply - and - demand forces
Not all of the funds meet the definition of SRI; some
asset classes remain the same as Betterment's standard portfolio because the company was unable to find a suitable or low - cost
alternative.
If you are
not highly sophisticated in financial analysis (and even if you are), you can do fine and probably a lot better, if you stay away from these
alternative asset classes entirely.
Prior to this, the fixed income
asset class was composed of four unscreened bond funds as a screened
alternative did
not exist.
Bitcoin's meteoric rise,
not just as an alternate currency but also as an
alternative investment
asset class has gotten governments wary.