Alternative asset investments (often called “alts”) are asset classes outside the traditional categories of publicly traded stocks, bonds, and cash equivalents. They include a wide range of options, including real estate, private equity, hedge funds, commodities, collectibles, and more.
These investments have grown in popularity because they can offer diversification (low correlation to stock and bond markets), potential for higher returns or income, and inflation protection—especially useful when traditional 60/40 portfolios face challenges from market volatility, rising correlations between stocks and bonds, or economic uncertainty. According to recent estimates, alternatives represent a significant and expanding share of global assets under management, with continued growth expected into 2026, driven by trends such as AI infrastructure, energy transitions, and private market expansion.
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