Financial-Planning.com: The Boom for Alts Training is Here

A recent article by Miriam Rozen on FinancialPlanning.com asserts that alternative investments are rapidly becoming of more interest to advisors. As a result of the booming interest, Rozen explains that many advisors are committing to lengthy training programs to efficiently educate themselves and their Clients on the details of the investments. Dave shared his thoughts on alternative investments with Rozen arguing that “Advisors who are tempted to spend time on alternatives-training programs, should instead ‘take a graduate course in economics or finance theory'” as he believes “With that kind of education, advisors will grasp the basics that should underpin any evaluation of prospective investments, whether they are tagged as alternatives or not.” As Rozen delves into the pros and cons of the investments, Dave is quoted saying “‘We share the skepticism’ about alternative investment products”. Rozen continues to capture Dave’s thoughts saying,

“Among some of the so-called liquid alternatives, product wholesalers have lumped together assets that have little in common and don’t make much sense as a category, Yeske says. The only trait they share is a common sensitivity to inflation, he says.

Yeske believes investments should be assembled in a fund or packaged as a strategy only if they share ‘a common economic driver at their core.’ Too many fund options offered as alternatives include real estate or oil and other commodities. ‘If you lump them together,’ he argues, ‘you lose the opportunity to ride the commodities’ cycle in a more nuanced manner.'”