Top 3 Reasons Why Alternative Investments Are Crushing The Stock Market

  1. Cash is King: Since 2004, the average dividend yield of the S&P 500 has been sporadic, swinging up and down without much cause. Companies are now trying to increase dividend yield again to appease investors, but skepticism remains high as to whether managers can keep this up for much longer.
  2. Stock Market Volatility: After booms and busts over decades, less people trust the market to provide consistent and reliable returns. Alternative investments generally have a low correlation to the stock market and can, therefore, be a great hedge to volatility.
  3. Higher Returns with Lower Risk: Risk adjusted returns describe an individual’s rate of return when factoring in the amount of risk taken on for a particular investment. When you look at the performance of alternative investments verses historical stock market returns (each adjusted for risk), alternatives have generally performed at a higher level.

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