market conditions change and the appetite for risk declines.
Alternative investments remain attractive as they can help you reduce risk by diversifying your portfolio. In fact, many consider them an insurance policy in their portfolios as alternative investments often zig when the market zags due to lower correlations, by design, to the traditional asset classes of stocks and bonds. While sophisticated investors may make more use of alternative strategies, the fact is that alternative investments of varying kinds are readily available to investors through mutual funds and/or exchange traded funds. It’s not unusual, for instance, to have a REIT mutual fund option in an employer’s 401(K) plan menu. Many REITs trade on the major stock exchanges and can be purchased or sold through brokers.
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