Alternative Investments

Because alternatives often have little correlation with traditional investments like stocks and bonds, adding them to a traditional portfolio can reduce its overall risk exposure.

The financial assets typically fall outside the scope of traditional investments like stocks and bonds, and they’re often intended to diversify investor portfolios.

In the 1600s, during a period of relative wealth for the Dutch after they gained their independence from Spain, some started collecting rare flower bulbs that created speckled and striped tulips.

This podcast episode starts with an explanation of what alternative investments are, then goes on to explain how people use them to diversify their financial portfolios and answer some common questions about alternative investments. Notably, the host interviews a certified financial planner about the topic.

From what’s known as the first leveraged buyout, when JPMorgan acquired the Carnegie Steel Company, to the creation of the first-ever hedge fund, alternative investments have a long history.

Beanie Baby stuffed animals were once a hot collector item with skyrocketing prices as people believed that the toys would significantly grow in value over time.

Labubus, the Chinese collectible toys, are being heralded as the next Beanie Babies. Pop Mart, the company behind the Labubus, is using a few psychological tools to keep the Labubu economy booming.

When the traditional markets crashed during the 2008 financial crisis, many people saw the value of their traditional investments plummet and began to look into alternatives as a result.

Experts recommend that fine jewelry investors focus on the most in-demand brands like Cartier, and on trends, time periods, and stones with staying power.

These different types of private equity include venture capital, growth equity, and buyouts.