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Ironically, a lot of these alternative products, especially the ones for retail investor came after such big run-ups and most recent investors in these assets have been generally disappointed. They are marketed that when markets tank again these products will save their portfolio. I think the diversification benefits of these alternative investments are exaggerated.
When the time comes, they will probably leave some investors disappointed and Wall Street will shut down most of these and will move on to other products that has done well in the most recent crisis. Obviously, until then the firms will have made a lot of money from these high fee products.
Going into bond now is too late in the game with yields already at historical low (and declining). The next move will likely be going up, although this may not take place in the near term.
Comments
Ironically, a lot of these alternative products, especially the ones for retail investor came after such big run-ups and most recent investors in these assets have been generally disappointed. They are marketed that when markets tank again these products will save their portfolio. I think the diversification benefits of these alternative investments are exaggerated.
When the time comes, they will probably leave some investors disappointed and Wall Street will shut down most of these and will move on to other products that has done well in the most recent crisis. Obviously, until then the firms will have made a lot of money from these high fee products.