ALTERNATIVE INVESTMENTS ARE NOT CREATED EQUAL

These days there’s a myriad of alternative investments, which one is right for you?

Alternative investments like real estate; commodities; tangibles like gold, art, wine, and stamps; private investments; private equity and venture capital have long been utilized by investors to hedge against stock market volatility. This is because alternative investments are theoretically uncorrelated to the broader stock and bond market and therefore insulated from broad market swings.

CHOOSE THE GOOSE

Imagine the following two scenarios. In the first scenario, Jack has the opportunity to acquire a goose that lays golden eggs. It will take some sacrifice and a leap of faith to acquire the goose but the payoff could be amazing. But first, he will have to make an important investment decision.

Jack’s investment capital is a dairy cow that has stopped producing milk. He’s been instructed by his mother to sell the cow for cash, which will be put back into the farm that hasn’t been producing so well.

PLAYING WITH THE BITCOIN FIRE

I recently came across an interesting article on Reuters.com that relayed a recent interview on CNBC of Saudi Billionaire Prince Alwaleed bin Talal, who owns investment firm Kingdom Holding where he shared his thoughts on cryptocurrencies like bitcoin. In the interview, Prince Alwaleed expressed his skepticism of cryptocurrencies, warning that bitcoin was like “Enron in the making.”