
Book Review: The Alternative Answer: The Nontraditional Investments That Drive The World’s Best-Performing Portfolios by Bob Rice.
Bob is the Alternative Investments Editor for Bloomberg TV and is the Managing Partner of merchant bank Tangent Capital, and serves on boards of investment management firms with over $2 billion of ‘Alternative’ assets under management.
The Alternative Answer is divided into multiple sections:
The Alternative Manifesto
Major Alternative Strategies
Major Alternative Structures
Higher, Inflation-Protected Income (Job 1)
Broadening the Base for Risk Reduction (Job 2)
Long-Term Growth Enhancement (Job 3)
Purchasing Power Protection (Job 4)
Big Picture
At the Dealership
References/Glossary
Manifesto: There are four mandatory tasks for investments:
- Job 1: Generate income that is greater than typical fixed income (bonds), with focus on income that rises with inflation.
- Job 2: Reduce overall risk by diversifying broadly across different strategies and asset classes.
- Job 3: Enhance long-term growth with opportunities that have more upside than traditional investments (stocks).
- Job 4: Protect Purchasing Power from inflation, currency devaluation and panics.
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