Most people think of investments as stocks and bonds, mutual funds or 401k's and the income derived in these investments are from the public markets. Since the global financial crisis of 2008 and 2009, professional investors have been moving money into less traditional alternatives, such as private equity, hedge funds, managed futures, as well as more tangible assets like precious metals, art, coins and real estate.
Zach Fuller
Caliber Companies
Source: linkedin.com
Zach Fuller Director of Investment Services at Caliber Companies in Scottsdale, Arizona, says there's been a definite increase in the focus on alternative assets. About 50% of the total asset base of "smart money," such as hedge funds and endowments, are turning into alternative assets, private equity and real estate. Fuller would say that the individual investor is following this trend as well. Fuller looks at the Self-Directed retirement plan companies and how they're growing, which shows him that people are taking control of their finances and moving away from traditional investments into alternatives. He feels this is driven more by comfort level and people today may not be as comfortable anymore putting their money with big corporations. Alternative assets are more appealing because they are things they can "touch and feel," and something tangible behind their money.
Zach Fuller is the Director of Investment Services at Caliber Companies and 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.