FYI: Many advisors may view alternative investments as diversifiers in portfolios: satellite investments added to a portfolio of stocks and bonds in an attempt to “hedge,” or counterbalance a specific risk the advisor believes is not completely addressed by the stock/bond core. For example, real assets, such as gold and real estate, are alternatives that may be added to portfolios for inflation protection because advisors may expect real assets to rise in value with any overall increase in wages and prices.
However, we believe that quite a few advisors are now investigating whether alternative investments, particularly those we refer to as alternative strategies, should occupy a place at the portfolio core.
Regards,
Ted
http://dailyalts.com/should-liquid-alternatives-be-part-of-the-core-allocation/
