An alternative investment is an investment product other than traditional investments such as stocks, bonds, cash or property. They are typically used as a tool to reduce overall investment risk through diversification due to the low correlation with traditional financial investments such as stocks. This can make it a very attractive hedge for those investors that want to hedge their current market risk.
One of the more common alternative investments is adding gold to your IRA or other type of plan. Gold typically works as a hedge against inflation so consequently can potentially add protection to your portfolio. So the key question being debated in today's marketplace is, should you include alternative investments in your portfolio, as well as, whether or not you should increase your allocations and what level of risk is acceptable for your situation.
Because of the high degree of investment analysis that may be required before buying you should always consult your Paisley Advisor to see if there is an alternative investment strategy that is right for you.