Investors Should Carefully Review Alternative Investments

investors review alternative investmentsIt seems that the stock and bond markets, as well as much of the financial sector, have been struggling to recover their composure, after losing much ground in 2008. Not only was market value lost, but also many of the traditional investments lost investor confidence, as well. This “love lost” has prompted the introduction of a steady wave of investing alternatives, to accommodate investors who were actively seeking viable options to replace traditional investment holdings, in their portfolio.

Certainly a speedy recovery and a return to pre-2008 market valuations would have satisfied much of the international investment community, but only now after a half a decade has passed; are shaky markets creeping back to their original values. This repeated disappointment has encouraged private investors to review container investments, and other well-established alternative assets, much more carefully. Instead of immediately including the traditional investments like stocks, bonds and banks, investment-seekers are looking deeper into the increasing number of options, in search of the most appealing alternatives.

Today’s savvy investor knows that things like political unrest and financial uncertainty can adversely affect the value of stocks and bonds, and given the currently economic turmoil in leading world markets, traditional holdings are becoming increasingly less appealing. As they continue to fall out of favor, traditional investments are being replaced in portfolios by offers to invest in shipping containers, commodities, collectibles, and other well-established alternatives. In fact, nowadays it is recommended that investment portfolios allocate 20 to 30 per cent of holdings to alternative investments, and experts are further suggesting that investors move that amount out of their equity investments.

The Global Financial Crisis has been a wake-up call for the international investment community. It has clearly demonstrated to investors that traditional investments are the furthest thing from a “safe bet.” In fact, the success of many stock investments are heavily influenced by the policies and decisions of the company’s executive, just as a country’s politicians and political uncertainty can negatively affect the value of their bonds. On the other hand, most alternative investment offerings operate independently of these asset classes and thus are not manipulated or influenced by their repeatedly bad performances and notoriously poor returns.

Leave a Reply