Alternative Investments - Be Ahead of the CrowdAlternative Investments are investments that are not one of the four traditional asset types (stocks, bonds, cash or property). This a broad definition, but you will find that "conventional definition" of alternative investments only to include private equity, leveraged buy-out (LBO) funds, arbitrage strategies, hedge strategies, and "event driven" strategies. Some people also classify venture capital in the alternative investment category.In reality the world of alternatives is even broader. Today at the brink of the worldwide systemic financial earthquake there are alternative investments that provide investors also a real alternative to diversify out from the financial assets (paper derivatives - stocks and bonds) and get access to real tangible assets. For example this includes investments into precious metals, commodities, forestry, wine, art, collector watches, etc. Take a look at our selected list of:
Alternative Investment Ideas 
Traditionally alternative investment assets have been held by institutional investors or accredited, high-net-worth individuals because of their complex nature and relative lack of liquidity. Latest changes in legislation in various countries (like Liechtenstein, Luxembourg, etc) allow access to alternative investments also to private individuals at significantly lower levels of investment over various life insurance wrappers or managed account solutions. In terms of liquidity, the new legislative structures provide these investments with monthly and even daily evaluations. The benefits of alternative investments include potentially higher returns, reduced volatility, diversification benefits resulting from low correlation with other investments. Also if you understand and consider the systemic risks with the mainstream classic investments, banking and insurance - you will find that alternatives that come from favorable jurisdictions with clear asset segregation principles in place, will help you to minimize almost all investment related counter-party risk. 
In case of worst case scenario - the price of these underlying alternative assets may go down, but you are still direct owner of your (tangible) assets without a risk of loosing those assets (ounces of precious metals, bottles of wine, painting, etc). This is unfortunately NOT the case for investments connected to (virtual) paper assets (most of the stocks, bonds, mutual funds and ETFs).
Because of all these benefits of alternatives, many large institutional funds such as pensions and private endowments have allocated significant portion of their portfolios to alternative investments. On the same time this "big boy's playground" has been restricted to small investors. Regulations have been put in place that leave these investment opportunities only to institutional investors. With the help of media and the "experts", a perception has been created that Alternative Investments are "too risky", "too complex" and "without regulation" for small investor's little brains. This might also be why this subject is not part of the financial curriculum in most of the schools and universities. Do your own thinking and homework. Knowledge around these investments is not a rocket science. And, is it not in the interest of the financial industry to keep the masses in the paper products created from the thin air (bringing hefty margins) and monopolize alternative investment opportunities only to the financial elite? The answer is Yours. To find out more ...
Take a look at our Alternative Investment Ideas More on Alternative Investment Strategies Our Best Alternative Investment Funds Read more about Tangible Investments Kondratieff Cycles What are Hedge Funds Why Managed Futures? Return from Alternative Investments to Inflation-Proof Investor Home 
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