Video: Alternative Investments Explained In 2 Minutes

For years, the middle class’s investment choices were basically limited to stocks and bonds – or mutual funds containing stocks and bonds. Meanwhile, the rich were investing from an entirely different menu of “alternative investments.” Financial regulations prohibited middle-class investors from investing in many of these alternative assets, but the advent of “liquid alts” (alternative investments in mutual-fund or ETF form) has made alternative investments accessible to all investors.

In this video, Aspiration Investments compares the different investment “menus” to different diets, equating “stocks and bonds” to “meat and potatoes.” While the meat-and-potato diet has short-term benefits, a balanced diet including vegetables – liquid alts, in this example, is healthier; and that’s the diet wealthy investors have been “eating” for decades. Health-consciousness is on the rise in the U.S., and so is the popularity of liquid alts – perhaps this is more than a coincidence.

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