FYI: It hasn’t been a great year for alternative investments. To put it simply, vanilla trumped spice. Only one alternative class—real estate—beat the S&P 500 Index in 2014. Of course, alternatives, or “alts,” aren’t meant to replace core holdings, only to augment them.
And unless you’re adding new money to your portfolio, you can’t just drop in a slug of alts. You typically make room for such investments by reducing other allocations. Yes, a dollop of real estate might have boosted your returns over the past year, but at what cost?
Regards,
Ted
http://wealthmanagement.com/print/alternative-investments/where-hedge
