Craig Wear, CFP® introduces the concept of alternative investments as asset classes often excluded from standard portfolio rules-of-thumb (e.g., 60/40). He frames alternatives as opportunities that can provide inflation protection and hedge stock-market volatility.
Everybody's kind of familiar with the kind of standard rule of thumb that's all over the financial press, which is a 60, 40 mix and meaning you got 60% stocks, 40% bonds, or 70, 30 or 80, 20 or 100, 0, whatever it is. But all those allocations tend to exclude certain asset class that really there's an opportunity. And it provides some inflation protection and some hedging against stock markets. And that is this whole world that we in the financial space call alternative investments.
