The fourth annual Innovative Alternative Investment Strategies conference in Denver (USA) just wrapped up and once again it proved to be complete success. The conference was attended by approximately 600 financial advisers looking to get some more information on how best to capitalise on the growing demand for alternative investment options in the market. There were about 65 exhibitors on hand and for the second year in a row, a full day of workshops that focused on the impact investing.
This is the fourth such conference and it is no coincidence that these types of alternative conferences have become more common in the last few years. Many ceased to be a secret investment of the rich and affluent, and were introduced to the global investment community when the US-European financial crisis began in 2008. When the global stock markets took a dive and struggled to recover, many of the alternative options delivered above-average returns and were unaffected by other asset classes. Nowadays, investors are more cautious when it comes to unpredictable and unreliable traditional investments such as stocks and bonds. Who can blame them? Investors have lost hundreds of billions of dollars as a result of the GFC and it’s residual affects are still being felt today, in regions around the world.
As I mentioned previously, there once was a time when alternative options were only available to the super-rich, but changes in the investment marketplace over the last half a decade have made them more accessible to the average private investor. Because of this, millions have been taking advantage of the emerging opportunities, like shipping container investments. Some of the talk among the attendees of the Innovative Alternative Investment Strategies conference, centered around the diversification of portfolios and how much percentage should be allotted to alternatives and most importantly, which specific alternatives will improve the odds of long-term investment success. One financial adviser at the conference summed it up best when he said, “There’s a lot of potential for selection success and for selection error … If you pick the wrong one, you don’t get diversification.”
Clearly he was stating the obvious about picking the wrong one. Investing is always about trying to determine and select the best investment. That’s what every adviser and investor is looking for in the first place. Make no mistake, there are many alternative investment offerings in the marketplace, and when confronted with this, picking the right one can be a challenge. With that being said, although it will take some focused research to learn the truth about investments, the effort put forth will pay off in the future.