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For some alternatives, once you consider the benchmark, the more difficult part is justifying the investment's place in the portfolio.
Benchmarking alternatives isn't easy, but it's critical in making sure clients and advisors are clear on the investments' role in the portfolio. Here's how to benchmark private equity, non-traditional bonds and long-short funds.
Do advisors know enough about alternatives to recommend them to clients? Here's one key to making sure you understand the investments' role in client portfolios.
Hedge fund alpha is going from bad to worse. Why the decline in performance?
How does owning gold compare to owning precious metals equities?
A small amount of gold in a portfolio can act as a good alternative asset to diversify risk.
Though private, non-traded REITs have very high loads and ongoing expenses, low-cost REITs can have a place as alternatives in our clients' portfolios.
Some alternative asset classes are appealing in theory until you stop and think about them, according to CFP Allan Roth. Here are three types advisors should avoid.
Low or negative correlation is necessary for a good alternative investment, but don't forget the second essential trait.
Alternative investments aren't just for institutions any longer. Alt mutual funds and ETFs have seen a 100% increase in inflows over the past two years.
By focusing on what really needs protecting, advisors can help bring insurance spending under control.
In grading investment performance, it turns out that consistency is even more important than asset allocation.
When converting a regular IRA into a Roth IRA, it may be wise to use risky assets and be ready to undo the conversion if the assets move in the wrong direction.
Narrow investment strategies and narrow fund categories tend to result in worse results for investors.
It is more important to rebalance in order to maintain a consistent asset allocation than it is to choose the right allocation in the first place.
Tax costs are too high, and clients need to take advantage of losses when they are available.
Good advisors must resist the temptation to chase performance.
Seeking above-market returns is foolhardy because costs are inevitably higher.
High-quality bond funds are much less risky than some investors believe and are not susceptible to bubbles.
Risk assessment questionnaires may produce flawed results because they don't adequately focus on an client's need to take risks.