In the video below…At the Charles Schwab IMPACT 2013 Conference Dorothy Weaver’s comments sound outrageous, using alternative investments in place of bonds in a portfolio. But after reflecting on the desired outcome, and with embedded risk controls around risk assets, it makes sense.
There remain two problems with adding alternatives in place of bonds:
1) Non-core exposures (such as alternatives) can underperform core exposures significantly in the short and medium term (2003, 2006, 2009, 2012, & 2013).
2) Diversification can disappear when needed the most. In 2008-09, many alternative investments lost more than 30%, eliminating any diversification benefits.
An outcome-oriented solution that aims to solve these problems could be MUCH more useful in finding bond alternatives.
To learn more, visit: http://www.ManagedVolatility.com
IMPACT 2013: Using alternative investments in place of bonds in a portfolio investmentnews.com
Dorothy Weaver of Collins Capital on how alternatives can fill a role previously held by bonds thanks to their ability to dampen volatility, differentiate returns and provide diversification. Exclusive coverage of Charles Schwab’s IMPACT 2013…
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