Investors are not willing to risk a repeat of 2008-2009. But rather than the stack in income fixed assets or risk to take off the coast of the table, it seems that investors are underway to find active boost the returns while minimizing their exposure to market.
It seems to be a pretty good case: get investors to buy investments which have not always been so profitable, and they get to feel as if their investment is safe.
One of the difficulties with alternative investments is that most people do not know how the price them. Is paid for the real estate really this great investment in 10 years? Gold and silver, which have performed excellently for the last decade, will continue their romp?
And what assets as secondary life insurance contracts? A government mandate will kill this now thriving business?
Except real estate, all of these markets are tiny. Gold and silver are worth only a few hundred billion bucks, life on the secondary market is still rare to annuities and other products.
With so little equity there, investors should call into question the merits of the investment against price. While metals proponents argue that Americans have only a small percentage of their wealth in gold and silver, which could easily tip in their favor, it should consider what happens when the money flows around the clock. Small gold and silver reserves over a huge value net us = a market which could explode if investors continue their appetite for alternative.
The fact of the matter is very simple. Alternative investments are alternative because they have not always been popular; for this reason, they are alternatives. If you are a believer in the sentence "this time is different", then by all means load! But as someone who begins to see the beginning of a long, long, recovery, the contrarian play is not in alternatives; It is in the companies of the plain-vanilla ignores market.
Hedge funds, investing alternative, bubbles, gold, investment, metals, isnurance secondary, silver
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