August 16, 2022

Clearing Up Misconceptions about Alts

August 12, 2022 | John Rickman | WealthForge

Have you ever wondered why alternative investments are called “alternative” investments? Industry insiders know that “alts” are essentially anything other than stocks, bonds, or cash. They can include real estate, hedge funds, private equity, and even fine art and antiques.

Unfortunately, broadly referring to these types of investments as “alternative” creates a visceral reaction among some wealth managers and their clients that allocating to alternatives exposes them to the same risks associated with cryptocurrency, Richard Hillson of Hillson Consulting says. “That’s like saying I had a bad experience with a stock once, and I’ll never pick a stock again,” he adds.

The alternative investment space is vast and varied, but includes tried-and-true asset classes such as real estate that have predictable returns and less market volatility.

Do your clients have questions about alts? Check out the full video, presented by Alta Trust and Altigo.

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