Book description
The rewards of carefully chosen alternative investments can be great. But many investors don't know enough about unfamiliar investments to make wise choices. For that reason, financial advisers Larry Swedroe and Jared Kizer designed this book to bring investors up to speed on the twenty most popular alternative investments:
Real estate, Inflation-protected securities, Commodities, International equities, Fixed annuities, Stable-value funds, High-yield (junk) bonds, Private equity (venture capital), Covered calls, Socially responsible mutual funds, Precious metals equities, Preferred stocks, Convertible bonds, Emerging market bonds, Hedge funds, Leveraged buyouts, Variable annuities, Equity-indexed annuities, Structured investment products, Leveraged funds
The authors describe how the investments work, the pros and cons of each, which to consider, which to avoid, and how to get started. Swedroe and Kizer evaluate each investment in terms of:
Expected returns
Volatility
Distribution of returns
Diversification potential
Fees
Trading and operating expenses
Liquidity
Tax efficiency
Account location
Role in an asset-allocation program
Any investor who is considering or just curious about investment opportunities outside the traditional world of stocks, bonds, and bank certificates of deposit would be well-advised to read this book.
Table of contents
- Copyright
- List of Tables
- Acknowledgments
- Introduction
-
1. The Good
-
1. Real Estate
- 1.1. Historical Returns and Risk: U.S. Real Estate, U.S. Equities, and International Equities
- 1.2. The Diversification Benefits of REITs
- 1.3. Asset Location and Real Estate
- 1.4. Recommended Investment Vehicles
- 1.5. International Real Estate
- 1.6. Your Home and the Asset Allocation Decision
- 1.7. Summary
-
2. Inflation-Protected Securities
- 2.1. Real or Nominal Return Bonds: Which Are Riskier?
- 2.2. TIPS: Doing the Math
- 2.3. Correlations with Equities and Inflation
- 2.4. Inflation, Price, and Interest Rate Risk
- 2.5. TIPS: Pros and Cons
- 2.6. Allocating Between Real and Nominal Return Fixed-Income Assets
- 2.7. A Shifting Allocation Approach
- 2.8. A Shifting Maturity Strategy
- 2.9. I Bonds
- 2.10. Summary
- 3. Commodities
- 4. International Equities
-
5. Fixed Annuities
- 5.1. How Long Do Payments Continue?
- 5.2. Determinants of Payment Size
- 5.3. The Benefits of Annuitization
- 5.4. Mortality Credits Make It Possible
- 5.5. When Annuities Can Be the Right Choice
- 5.6. Evidence from Academia
- 5.7. When to Purchase a Fixed Annuity
- 5.8. Inflation-Indexed Immediate Annuities
- 5.9. Summary
- 6. Stable-Value Funds
-
1. Real Estate
-
2. The Flawed
- 7. High-Yield (Junk) Bonds
-
8. Private Equity (Venture Capital)
- 8.1. Origins
- 8.2. The Attraction
- 8.3. The Historical Evidence
- 8.4. Characteristics of Private Equity Returns
- 8.5. Venture Capital Versus Publicly Traded Securities
- 8.6. Perception Versus Reality
- 8.7. Private Equity's Role in a Portfolio
- 8.8. Nonmonetary Explanations for Private Equity Investing
- 8.9. Summary
- 9. Covered Calls
- 10. Socially Responsible Mutual Funds
- 11. Precious Metals Equities
- 12. Preferred Stocks
- 13. Convertible Bonds
- 14. Emerging Market Bonds
-
3. The Bad
- 15. Hedge Funds
- 16. Leveraged Buyouts
- 17. Variable Annuities
- 4. The Ugly
- Final Thoughts
- Notes
- Glossary
- Recommended Reading
- Sources of Data
- About the Authors
- About Bloomberg
Product information
- Title: The Only Guide to Alternative Investments You'll Ever Need: The Good, the Flawed, the Bad, and the Ugly
- Author(s):
- Release date: November 2008
- Publisher(s): Wiley
- ISBN: 9781576603109
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