We’re facing an interesting dilemma this year — every asset class is up. From bonds and stocks to commodities and real estate, investors are raking in the dough no matter where they placed their money. The problem is … that’s not supposed to happen. Bonds are supposed to zig, when stocks zag. In order to gain some diversification back, alternative investments — things like long/short, 130/30 tactics, merger arbitrage etc. — have gained in popularity. But they can be a mine field. Here’s Roger Nusbaum at the AlphaBasket’s blog showing investors how to actually use them and not be disappointed.
Investment News (Editorial Staff): The SEC has its eye on the rush into liquid alts.
Bloomberg View (Barry Ritholtz): Do you really need liquid alts anyway? Big time investors have missed some big bucks while using them.
FT Alphaville (Izabella Kaminska): Bitcoin mania. The aftereffects of a recent government-seized auction.
Minyanville (Howard L. Simons): You want an alternative investment? How about our neighbors to the north? Canadian stocks and currency are smoking!
Points & Figures (Jeffrey Carter): Or you can try some venture capital. Now is the time to bet on the alternative investment.
Baron’s Income Investing Blog (Michael Aneiro): Things just keep getting worse for muni-bond issuer Puerto Rico. Downgrades and defaults loom.
Wired (Adam Mann): No, it’s not the work of some evil demon. Why your ear buds are always tangled.