In recent years, smart investors have diversified their portfolios into alternative investments such as real estate and commodities, to buoy their holdings in times of market stress. But 2008 proved to be an anomaly, with those asset classes falling right down along with stocks. The average real estate and commodity mutual fund fell 40% to 50% last year, The Wall Street Journal reports.

But some financial advisers are still holding out hope that alternatives will rebound in 2009, including Judith Shine of Shine Investment Advisory Services in Lone Tree, Colo. In 2008, she allocated about 20% of her clientsÂ’ portfolios to alternatives. Currently, she has pared that back slightly, to 15%, on the hope that real estate, commodities, hedging and other alternatives will rebound in the coming year.

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