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The Specialized Alternative Investment Analyst

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By Mayra Pierce


When talking about investment, the first thing that comes to mind is the well-known practice of investing in stocks, bonds and cash as a means of acquiring money in the long run. However, a less popular and equally lucrative practice, are alternative investments, usually done by the specialized alternative investment analyst.Unlike the traditional form, this one does not relate to putting money into stocks, bonds, or cash, but is associated with real estate, derivatives, commodities, hedge funds and many others.

Unlike bonds, stocks or cash, the subjects here are tangible: commodities, real estate or derivatives. This option also offers many different hedge funds to invest in. A professional on alternative tracks and analyzes chances in this matter. Researches have stated that there are firms canalizing 10% of their profits towards this activity.

The analysts who operate in asset classes, however does not have to follow the ups and downs of the stock market, but instead should look at the 'real prices' moving up and down in the world. Some of these investments, like forests, are relatively new, and therefore analysts do not have much research data at their disposal, while some have a very long tradition, like precious metals.

Just like other similar businesses, the analysts who work or operate in the asset classes must have a sharp mind, and a good sense for business opportunities. The number of potential investments is more diverse, as these range from stamps all the way to oil and other commodities.

Furthermore, stock exchanges around the world, like the London Stock Exchange, or Wall Street are not only overcrowded with competition but also quite unstable, and therefore the alternative path provides more safety and security. Following the economic crisis of 2008, whose consequences are still felt by many, there has been an increased need for investment in tangible goods. This has motivated many large firms to re-allocate a portion of their investments in this direction.

The alternative way is safer than the traditional way since this last one, provides overcrowded and unstable stock exchanges, such as the London Stock Exchange and Wall Street. After the still palpable economic crisis of 2008, the demand on investment in palpable assets keeps on increasing. Therefore, firms have been re-allocating a part of their profits towards this practice.

Another advantage of a career to join the analysts in the asset classes is that it is much easier to launch a solo profession, and that freelancing is much easier, as mutual funds are usually more difficult to step into. For those wishing to embark on this career path, the best way of obtaining the necessary education for the job is through the chartered association for these analysts.

The CAIA, the chartered association for these analysts, offers the best way of education for this professional field. With 12 years of history, this organization has no profit intended and holds as a premise to educate young people in the alternative investment analysis matter. This institution leads with almost 7,000 members from around the globe. Due to the excitement, stimulation and the profits conveyed by putting money into asset classes other than stocks, bonds, and cash, it is the best option for anyone who just knows how to recognize and take the better chances as they show up to them and desires to trade beyond papers and numbers.




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