Although stock market indexes (^DJI, ^IXIC, ^GSPC) pushed to consecutive record highs this past month, investors are seeking to diversify their portfolios even further through alternative investments, into categories like real estate, natural resources and commodities, and hedge funds.
Prosperity President Michele Martin joins Yahoo Finance in-studio to discuss the benefits of alternative investing strategies and asset classes.
“Essentially what they can do, if you’re looking to de-risk your stock portfolio, it can buffer on the downside,” Martin explains. “So it’s a strategy that’s covered with puts and calls, and so typically there’s a buffer. It can be 5%, 10%, even up to 25%. So if the market’s volatile and it goes down, you’re protected at that loss buffer. And the thing that’s really interesting about it is you can participate still in market returns.”
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor’s note: This article was written by Luke Carberry Mogan.