The Nontraditional Investments That Drive the World’s Best-Performing Portfolios
Exasperated by bond investments that yield less than the rate of inflation?Worried that stocks can do no better than the stumbling global economy? Join the millions who are discovering the bitter aftertaste of “plain-vanilla investments” and then make a beeline for Bob Rice’s new book on alternative investing. This is no pie-in-the-sky guide to unearthing the next can’t-miss penny stock or the next path-breaking technology too secret to be named. Rice offers sophisticated, easily accessible advice for using alternative investments to build a portfolio that’s likely to generate solid gains in an age of anemic returns, yet still be resilient enough to weather a global financial crisis.
Peter PassellSenior Fellow, Milken Institute
Making investment decisions today is incredibly difficult. With interest rates at historic lows, and the Fed about to unwind quantitative easing, bonds carry a lot of risk for little reward. At the same time, stocks look fully valued (or overvalued) by nearly every traditional measure… and if the Fed does tighten, history indicates big problems ahead for equities.
Most investors face a problem they’ve never seen before. At these levels, bonds simply cannot serve their traditional functions of downside protection and income production. Nor can stocks do their two “jobs” for investors: growth and inflation protection. More and better choices are needed.
Fortunately, there are indeed scores of other asset classes and strategies available, time tested approaches used by the world’s greatest investors for decades. And the even better news is that recent changes in mutual fund design and securities laws have made nearly all of these available to average investors for the very first time.
Whether you’re seeking current income, downside protection, greater growth, or inflation protection, The Alternative Answer explains how to use these new options to achieve your goals. Long/short strategies, MLPs, farmland, venture capital, corporate buyouts, peer to peer lending, TIPS, and dozens of other categories are explained in plain English. And so are the exact ways in which you can invest, and what to watch out for when you do.
Whether you have significant accumulated wealth or are just starting out, you need a roadmap from the old 60/40 formula to a portfolio that generates income and growth while protecting against the extraordinary risks we face today. In other words: The Alternative Answer.