We live in a world where the search for diversification and alternative returns in a portfolio is the main objective. Many investors are wary that low interest rates may have driven the valuations of stocks, bonds and other asset classes to unsustainable heights. So, we need to look for uncorrelated assets in our portfolios. Of course, product providers are all too happy to oblige and tout everything under the sun as a new asset class that can diversify your risk. But let’s take a step back and ask ourselves what an asset class is in the first place.
What is an asset class?
What is an asset class?
What is an asset class?
We live in a world where the search for diversification and alternative returns in a portfolio is the main objective. Many investors are wary that low interest rates may have driven the valuations of stocks, bonds and other asset classes to unsustainable heights. So, we need to look for uncorrelated assets in our portfolios. Of course, product providers are all too happy to oblige and tout everything under the sun as a new asset class that can diversify your risk. But let’s take a step back and ask ourselves what an asset class is in the first place.