Do advisers play a critical role in communicating the benefits of Alternative Investing?
Published by Carol White, Logistics Consultant at SESE DEUTSCHLAND GMBH
Here's an interesting article on The Ups & Downs of Alternative Investing focusing in the idea that it's so hard for investors to accept that alternative investments are supposed behave differently than traditional investments .
Throughout the article the author brings into focus the role advisers play in communicating the benefits of alternative investment.
When presented with the argument for including alternatives in a total portfolio, most investors are hypothetically fine with the potential return streams offered by such investments diverging from the traditional stocks and bonds paths. When both alternatives and traditional markets are on the upswing, investors don’t appear to second guess the directions their investments are taking. But, when the paths separate, and alternatives are on the downswing, or merely lagging the upward trend of traditional markets, suddenly the whole concept of having alternatives within a portfolio is up for discussion. While the following seems rather basic, much like athletes practicing their sport for hours to build muscle memory, these points can reinforce advisers’ persuasive mental memory of the role alternatives play in clients’ portfolios .
Advisers do play a critical role and are pressured to keep their clients committed to alternatives, and they have had a tough time combating with common investor concern regarding alternative investing. What do you think?
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- Consulting & Services
- Finance