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The Case For Alternative Investments

Monday, November 21, 2011 - 11:15 AM
From Allan Roth's CBS MoneyWatch article
The two risky asset classes I use for alternative investments are real estate investment trusts and precious metals stocks. Correlations [with stocks] are not negative as they only sometimes zig when stocks zag.
Ken TuminKen Tumin5,467 posts since
Nov 29, 2009
Rep Points: 124,996
1. Wednesday, November 23, 2011 - 3:09 PM
When developing an asset allocation, I use 4 asset classes-

Equities (stocks)

Fixed income (bond/credit)

Real Estate (Real Estate Investment Trusts)

Commodities (ETFs that track 14 major commodity rings.


When used in the correct percentages according to a person's risk tolerance, time horizion and investment strategy, they have performed better (in a 20 year back testing) than the classic Stock and Bond allocations. 
WealthManagerWealthManager8 posts since
Nov 21, 2011
Rep Points: 12