Author Topic: What If You Invested $100 In Every'new' Alternative Asset Class Out There?  (Read 1781 times)

bootyman

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I just ran across this article at the link below, and it got me thinking?  What if you invest $100 into every 'new' asset class.  Right when they pop up. 

What new asset classes are out there?

SeattleCPA

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David Swensen in "Pioneering Portfolio Management" points out the in the alternative asset classes, the median return is often poor and less than you could have received using a passive strategy and traditional asset classes.

He goes on to suggest that to make alternative asset classes work, you need to get into the investments that deliver top quartile returns... something most big money institutions can't even do very successfully.

P.S. I see two exceptions to the "Don't go alternative" rule of thumb for individuals: Direct real estate investment and small business ownership... but in both of those cases, you're really treating the investment as a job and not as a passive investment.

PizzaSteve

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Accounting and investment management becomes your hobby and a part time job. It is a great idea if investing theory gets you excited (i actually like investing theory personally).

How about you work at what you do well, so you earn good money, invest in areas that free up time and spend hobbies on topics you love?


gp_

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I just ran across this article at the link below, and it got me thinking?  What if you invest $100 into every 'new' asset class.  Right when they pop up. 

What new asset classes are out there?

most people are weary of cryptocurrencies (ie. bitcoin), but if anyone invested in pretty much any cryptocurrency within the last 3 months and held, they saw a massive gain from their investment.

using your $100 example, if you bought $100 of bitcoin in 2010 (and held), it would be worth $75 million today.
https://www.washingtonpost.com/news/on-small-business/wp/2017/05/23/100-of-bitcoin-in-2010-is-worth-75-million-today/?utm_term=.bb5f2a8adccb

zazpowered

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I just ran across this article at the link below, and it got me thinking?  What if you invest $100 into every 'new' asset class.  Right when they pop up. 

What new asset classes are out there?

most people are weary of cryptocurrencies (ie. bitcoin), but if anyone invested in pretty much any cryptocurrency within the last 3 months and held, they saw a massive gain from their investment.

using your $100 example, if you bought $100 of bitcoin in 2010 (and held), it would be worth $75 million today.
https://www.washingtonpost.com/news/on-small-business/wp/2017/05/23/100-of-bitcoin-in-2010-is-worth-75-million-today/?utm_term=.bb5f2a8adccb

Yeah the movement of cryptocurrency prices in the last few weeks has been crazy. Not sure how sustainable it is though

gp_

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Yeah the movement of cryptocurrency prices in the last few weeks has been crazy. Not sure how sustainable it is though

yeah, it's been insane. i think there's still some room to profit, but i'm sure a cool off period is coming soon.