By Richard Eisenberg
At least 15 new alternative-investment products will be available in the next 9 months — should you take the plunge?
This article is reprinted by permission from NextAvenue.org.
The first rule of investing wisely is diversification. Hold a portfolio of stocks and bonds, financial advisers say, because if stocks go down, your bonds will come to the rescue and vice versa. Well, not this year.
In 2022, stocks and bonds have generally been pummeled. The S&P 500 index (a basket of the 500 biggest U.S. stocks) is down more than 20%. And 10-year Treasurys (the benchmark for intermediate-term bonds) have lost more than 15% of value due to soaring interest rates; when interest rates go up, bond prices go down.
‘The year we’ve been scared of’
“This is the year we’ve been scared of, and now we’re having it,” Anastasia Amoroso, chief investment strategist for the global financial firm iCapital, said at a recent Morningstar (MORN) conference.
The dog days for the stock and bond markets are leading some investors to put money into what are known as alternative investments, hoping that they will produce decent returns.
At least 15 new alternative-investment products will be available in the next nine months, Steffen Paul, founder of the Moonfare investing platform, recently told the Financial Times. And a NASDAQ study predicted the alternative investment market could reach $17.2 trillion by 2025.
Should you take the plunge?…
