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What are ‘alternative investments’ and are they for me?

Featured writing by Allan Norman · M.Sc. · CFP · CIM

The Short Version

Alternative investments, often shortened to alts, get talked about a great deal, but many people are not entirely sure what the label covers or whether it applies to them. This piece explains what sets these investments apart from familiar stocks and bonds and why those differences are precisely what will draw some investors in and steer others away. The honest framing is that there is no universal yes or no; whether alts belong in your portfolio depends on your goals, your tolerance for risk, and how their particular traits fit alongside what you already hold. It is a helpful read for an investor who keeps hearing the term and wants a plain-spoken sense of what they are weighing, so they can decide based on their own situation rather than on the assumption that something less conventional is automatically better or worse.

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