How we invest changes. Technology makes investing easier and more accessible than ever. Meanwhile, Millennials and Gen Z are withdrawing public stakes.
These changes have led to an increase in alternative assets. People are increasingly looking for new and innovative ways to approach investing. But are alternative assets really the new frontier of modern investing?
What is an alternative asset?
As the name suggests, alternative assets are an alternative to traditional assets such as stocks, bonds, and cash. The term usually describes unconventional investments. This can include anything from an Honus Wagner baseball card to bottles of good wine. However, this can also apply to more well-known investments such as real estate and private mortgages.
Simply put, alternative assets are the things that would likely not show up when you meet with your financial advisor. They are not easy to categorize, making it difficult to manage. Often people invest in alternative assets because of their passion for the asset and not because of their immediate ROI.
What makes alternative assets an attractive investment?
Investors will go where money can be made. This includes alternative assets. In addition to higher potential returns, alternative assets also have other characteristics than traditional assets. Here are some factors to consider when considering alternative assets: