There is no standard definition of alternative investments. But when financial advisors use the term, they’re referring to specific strategies and sectors. The top alternatives strategies identified by advisors include managed futures, long/short, market neutral and absolute return.
When advisors discuss alternative investment sectors, they’re referring to sectors such as gold/precious metals, natural resources, direct real estate investments, currencies and private equity.
Next Part 5 of 5: Putting Alternative Investments to Work