Author Topic: Canada: Alternative Investments  (Read 1608 times)

bege

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Canada: Alternative Investments
« on: December 24, 2017, 09:50:06 AM »
In the latest financial face lift article from the Globe and Mail (link below), the adviser recommends investing in alternative investments to increase return.  I currently invest in index funds only (e.g., XIC, XBB, etc.).  Just curious, does anyone invest in alternative investments, and if so, what kind and why?  Thanks.

https://www.theglobeandmail.com/globe-investor/retirement/retire-planning/newly-divored-dad-is-setting-his-retirement-goals-high/article37422504/

Lews Therin

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Re: Canada: Alternative Investments
« Reply #1 on: December 24, 2017, 11:18:42 AM »
They don't even say what an alternative investment is in the article...

RichMoose

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Re: Canada: Alternative Investments
« Reply #2 on: December 24, 2017, 04:00:05 PM »
Using the word "Alternative" in this type of article and context is nothing but a sales pitch for the advisor. Makes them sound very knowledgeable and sophisticated.

Alternatives don't increase returns broadly speaking when talking about them as an asset class. They can provide a non-correlated or less correlated return to stocks or bonds.

That said alternatives can be anything from timberland to managed futures to pipelines to agriculture assets.

Heckler

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Re: Canada: Alternative Investments
« Reply #3 on: December 24, 2017, 04:19:41 PM »
Any alternative to 1.5 MER with 4.67 returns before fees is probably a good idea.

Izus

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Re: Canada: Alternative Investments
« Reply #4 on: December 27, 2017, 09:00:57 AM »
I've been dabbling in our cannabis stocks for about 6 months now.  I put in around $25k which has grown to 65K so far.  It's a little volatile and there's always cries of overvaluation, but there's money to be made for sure.

Currently holding WEED, FIRE, ATT, MARI, HVST

I'll likely dump my HVST/ATT/MARI holdings into HMMJ (cannabis index) after some nice legalization run-up gains.

As long as you understand it's a very speculative market, you can throw $5k at something and have some fun. :)

big_slacker

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Re: Canada: Alternative Investments
« Reply #5 on: December 29, 2017, 07:53:59 AM »
I've been dabbling in our cannabis stocks for about 6 months now.  I put in around $25k which has grown to 65K so far.  It's a little volatile and there's always cries of overvaluation, but there's money to be made for sure.

Currently holding WEED, FIRE, ATT, MARI, HVST

I'll likely dump my HVST/ATT/MARI holdings into HMMJ (cannabis index) after some nice legalization run-up gains.

As long as you understand it's a very speculative market, you can throw $5k at something and have some fun. :)

I came to this sub-forum to post about WEED (or TWMJF in the US) specifically. I just threw $1k in 2 days ago and I've made 10% already. ACBFF is the other major Canadian player.

biggrey

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Re: Canada: Alternative Investments
« Reply #6 on: December 29, 2017, 08:40:47 AM »
In the latest financial face lift article from the Globe and Mail (link below), the adviser recommends investing in alternative investments to increase return.  I currently invest in index funds only (e.g., XIC, XBB, etc.).  Just curious, does anyone invest in alternative investments, and if so, what kind and why?  Thanks.

https://www.theglobeandmail.com/globe-investor/retirement/retire-planning/newly-divored-dad-is-setting-his-retirement-goals-high/article37422504/

I chuckle when I read that.  The advisors would typically have no idea what they are talking about, but it sounds great and is easy to say.

It is much harder to do successfully.  You need knowledge of the alternative investment type - what is it and what is it designed to do? 

You need actual access - why do you get to buy into it and why can't the other guy? 

Then, the investment actually has to be better than market in terms of returns.  Otherwise, why would you invest in it?

And the risk has to be manageable and fit within your framework.  Risk and reward have to be balanced.

And you need a high level of transparent access to it so you know what the hell is actually going on. 

See, not so simple.

I have business and fixed income holdings of this nature.  Anything but simple.

bege

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Re: Canada: Alternative Investments
« Reply #7 on: December 30, 2017, 10:24:51 AM »
Thanks for all the responses.  They are helpful.