I am not a fan. I could see investing in a REITs fund again but I’m not sure that qualifies now that REITs are in the S&P 500. Yeah, gold investors look like geniuses now, and I used to have a gold mining company ETF years ago. But I’m not buying back in now having missed the recent move. I think the question is what you can reasonably expect the returns to be. I have a high risk tolerance so I can hold on when stocks fall and much of the rest of my portfolio is in short Treasurys and money markets and CDs, which will not lose value. So I don’t see the need for assets just to smooth out volatility or go up when stocks go down if their long term return potential is less than stocks.
If you do, be sure to read the fine print. We own an “alternative investment fund”. You can only sell it during periods at the end of the quarter and then only if there are enough buyers. It has been almost a year and we still have money there. It has done well but it is highly illiquid.
My highest returns have been from Venture Capital / Angel Investing. Eight figures in returns from a few hundred thousand invested. Once a liquidation event happens, I cut checks to charities and then to my long term retirement accounts which are in boring index funds and a few active managed funds.
I am not a fan. I could see investing in a REITs fund again but I’m not sure that qualifies now that REITs are in the S&P 500. Yeah, gold investors look like geniuses now, and I used to have a gold mining company ETF years ago. But I’m not buying back in now having missed the recent move. I think the question is what you can reasonably expect the returns to be. I have a high risk tolerance so I can hold on when stocks fall and much of the rest of my portfolio is in short Treasurys and money markets and CDs, which will not lose value. So I don’t see the need for assets just to smooth out volatility or go up when stocks go down if their long term return potential is less than stocks.
If you do, be sure to read the fine print. We own an “alternative investment fund”. You can only sell it during periods at the end of the quarter and then only if there are enough buyers. It has been almost a year and we still have money there. It has done well but it is highly illiquid.
No. A small allocation to an alternative investment is unlikely to make much difference overall. Why complicate things?
Alternative assets are suited for investors with stable income streams in excess of the alternative asset loss limits.
My highest returns have been from Venture Capital / Angel Investing. Eight figures in returns from a few hundred thousand invested. Once a liquidation event happens, I cut checks to charities and then to my long term retirement accounts which are in boring index funds and a few active managed funds.