Alternative Asset Analysis (AAA) has backed claims from Fox Business that the ‘smart money’ is increasingly going into alternative investments.
Boston, MA, USA – August 13, 2011 — Alternative Asset Analysis (AAA) has backed claims from Fox Business that the ‘smart money’ is increasingly going into alternative investments.
The article refers to a survey by Morningstar and Baron’s, which found that 34 per cent of institutional investors said that alternatives accounted for at least a quarter of their portfolios under management.
Nadia Papagiannis of Morningstar said that investing in alternatives can be an excellent way of spreading risk and minimizing the impact of a market crash on investments. She told Fox Business: "By investing in different asset classes such as currencies and commodities and also by trading the same or different asset classes in different ways – either by shorting or hedging – the risk and return (characteristics) of these investments are different than what currently exists in your portfolio.”
This sentiment was echoed by AAA’s analysis partner, Anthony Johnson, who said, “The market for commodities is booming at the moment thanks to demand form China, India and other emerging economies."
“There is plenty of money to be made through alternative assets, such as forestry and real estate at the moment,” he added. AAA supports ethical investments in alternative assets in emerging economies, such as the sustainable forestry plantation projects launched by Greenwood Management. This firm offers investors the options of putting as little as EUR 10,000 into the projects, which supply non-native timber for domestic projects and exportation to Asia and elsewhere.
William Bernstein, the author of 'The Investor's Manifesto: Preparing for prosperity, Armageddon and everything in between', stated that it is over the long term that alternative investment can really pay off. “Instead, it's the returns over a long period of time that count the most. And that is where diversification will be the most helpful: over the long term.”
Timber is a good option for both short-term and long-term investment as there is still money to be made over a period of maybe five years, explained AAA. It added that the asset will simply continue to grow, so can be held on to for as long as it takes for the timber to reach the prices preferred by an investor.
About Alternative Asset Analysis:
The remit of Alternative Asset Analysis is to analyse and provide news on the global performance of a wide range of alternative asset classes including, but not restricted to, commodities, real estate, forestry, foreign exchange, hedge funds, private equity and venture capital.
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