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  • MJG September 2017
Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

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Why Alternative Investments Are Bad For Your Portfolio

FYI: It’s never been easier for investors to add exposure to alternative investments into their portfolios.

Liquid alternatives offering exposure to hedge-fund strategies and nontraditional asset classes through a mutual fund or ETF wrapper are becoming increasingly popular among investors looking to increase diversification at a time when equity valuations are high and fixed-income yields are low.

Unfortunately, there is no guarantee that alternatives will improve returns or shield your portfolio in a down market.
Regards,
Ted
https://blogs.wsj.com/experts/2017/09/04/why-alternative-investments-are-bad-for-your-portfolio/

Comments

  • Hi Guys,

    KISS (keep it simple, stupid) wins again! Simplicity has many advantages over complexity, especially in the investment world. Many of the 36 investment golden rules summarized in Ted's recent reference to a Ben Carlson article hint that simple wins over complex without explicitly saying so. For your convenience, here is the Link to the article that Ted posted:

    http://awealthofcommonsense.com/2017/09/36-obvious-investment-truths/

    Once again Ted, thank you for this useful reminder. I try, sometimes with success, but not always, to apply these terrific guidelines. Great stuff!

    There are scores of articles and papers that advocate the KISS approach. Here is a Link to just one from many dozen choices:

    http://www.marketwatch.com/story/when-it-comes-to-investing-it-pays-to-keep-it-simple-2015-11-11

    Enjoy and prosper by limiting your effort. That's typically not a winning strategy in many other business adventures.

    Best Wishes
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