Why Advisors Are Embracing Alternative Investments

Stocks, bonds, and cash, the three traditional pillars of an investment portfolio, are looking a little wobbly lately. Inflation-adjusted yields on cash are negative. Bonds are being squashed by interest-rate fears. And stocks are historically expensive. To meet investors’ needs, financial advisors are increasingly turning to alternative investments such as real estate and private equity.

Alas, there’s no playbook for using alts in investment portfolios. So Barron’s Advisor asked five financial pros, how are you using alternatives now? It’s the latest Big Q, our regular feature where we ask advisors and industry leaders for their best answers to challenging queries.