Stock Market Alternatives-Why Alternative High Yield Investments Might Be For You
What are alternative investments? The set of correct answers to this question is extremely large. Alternative investment examples range from cryptocurrencies such as Bitcoin to shares in a private company. Essentially, any investment you make without going through one of the major stock, bond, or commodity exchanges can be considered an alternative investment.
Alternative investments attract investors who are looking to diversify away from the market and reduce volatility. Incorporating alternative investments in your portfolio allows you to reduce the correlation between your portfolio and the general market. The best alternative investments are, arguably, those with negative correlations to the general market. This means that their returns and losses are independent from stock and bond market returns and losses.
This post appeared first on Barbara Friedberg Personal Finance.