From Investing.com: 2025-06-18 02:01:00

Alternative investments have become more mainstream in recent years, offering options beyond traditional stocks and bonds. These investments, including real estate, collectibles, and private holdings, promise better risk-return tradeoffs and diversification benefits. However, the actual benefits of adding these alternatives to a portfolio are under scrutiny, with some studies showing modest or negative returns. The rise of alternative investments has raised questions about their true value and whether individual investors should be cautious about jumping into this universe. Buyers should be picky, avoid high-cost options, and be realistic about time horizons and liquidity needs when considering alternative investments. Correlation matrices and historical alphas may not always paint an accurate picture of potential returns from these investments.



Read more at Investing.com: Payoffs From Alternative Investments: Many a Slip Between the Cup and the Lip?