What Is an “Alternative” Investment?
Diversification is not just a financial industry buzzword; it’s often an important part of just about anyone’s financial strategy. A common form is a simple one: stocks, bonds, and cash. But is that true diversification? For some people, that may work just fine. Others, though, may want to consider a little extra: something known as an “alternative investment.” Whether these are suitable for an individual investor, though, depends on several factors. So before you jump into anything non-traditional, it’s a good idea to know what you’re getting into and why.