Given the tremendous size of the alternative market, access still presents a problem for most people to alternative investments. With 75% of advisors now recommending a 10-20% allocation into alternatives, Todd Ryden, CEO of FNEX, says that the market is slowly improving, yet people still need to educated. As more people hear about alternatives, the advisor space has to wake up and provide some of those alternative strategies that individuals are looking for, explains Ryden. He feels we're in a "deal discovery" standpoint from a high net-worth's perspective with a lot more attention coming to this market in the next couple of years.
Todd Ryken
CEO, FNEX
Source: hedgethink.com
Ryden agrees that alternatives are designed to produce returns that are uncorrelated with stocks and bonds. If you're a regular investor just looking at bonds, everything is "extraordinarily expensive," he says and when things that don't correlate begin to do so, you need to think of a way to be non-correlated. Some alternative strategies will allow for that, he says.
All of the technical indicators speak to the fact that we're at a top or nearing a top and Ryden would be looking to "take some chips off the table" or begin to position a portfolio so that in a downside move it won't be harmed as much.
Todd Ryden is the CEO of FNEX, the first alternative investment marketplace providing a broad platform for investors to source a variety of private investments, such as private shares in companies, secondaries in well-known companies, hedge funds and basically everything that doesn't change on an exchange. Ryden spoke with Alternative Investing News providing online alternative investing video news content. Alternative Investing News is a featured network of Sequence Media Group. This video was brought to you by Vantage Self-Directed Retirement Plans.