ASSET ALLOCATION
Asset allocation is the process of dividing investments among different kinds of assets to optimize risk and reward.
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Alternative investments are non-traditional assets that fall outside of conventional stock, bond, or cash markets. These include real estate, hedge funds, private equity, commodities, and cryptocurrencies. In trading, alternative investments are used for diversification and to potentially hedge against market volatility. They often offer higher returns but come with increased risk and liquidity challenges. Investors in alternative assets seek opportunities outside of traditional markets, typically to achieve long-term growth or hedge against economic uncertainty.