Aside from the standard meat-and-potatoes equity and fixed-income investments that should make up the portfolios of most people, several alternative asset classes are available to individual investors.
Alternative assets are a good diversification tool because they’re generally not correlated to the stock market. This means when the market goes down, alternative assets may go up or stay the same and vice versa.
Large investors such as pension and endowment funds have been attracted to hedge funds because of their reputation for producing high returns. But it’s difficult to tell how successful hedge funds are because the historical data leaves much to be desired. Read more…
















