{"product_id":"the-only-guide-to-alternative-investments-youll-ever-need-isbn-9781576603109","title":"The Only Guide to Alternative Investments You'll Ever Need","description":"The rewards of carefully chosen alternative investments can be great. But many investors don’t know enough about unfamiliar investments to make wise choices.   For that reason, financial advisers Larry Swedroe and Jared Kizer designed this book to bring investors up to speed on the twenty most popular alternative investments:\u003cbr\u003e \u003cbr\u003e Real estate, Inflation-protected securities, Commodities, International equities, Fixed annuities, Stable-value funds, High-yield (junk) bonds, Private equity (venture capital), Covered calls, Socially responsible mutual funds, Precious metals equities, Preferred stocks, Convertible bonds, Emerging market bonds, Hedge funds, Leveraged buyouts, Variable annuities, Equity-indexed annuities, Structured investment products, Leveraged funds  \u003cbr\u003e \u003cbr\u003e The authors describe how the investments work, the pros and cons of each, which to consider, which to avoid, and how to get started. Swedroe and Kizer evaluate each investment in terms of:  \u003cul\u003e \u003cli\u003eExpected returns\u003c\/li\u003e \u003cli\u003eVolatility\u003c\/li\u003e \u003cli\u003eDistribution of returns\u003c\/li\u003e \u003cli\u003eDiversification potential\u003c\/li\u003e \u003cli\u003eFees\u003c\/li\u003e \u003cli\u003eTrading and operating expenses\u003c\/li\u003e \u003cli\u003eLiquidity\u003c\/li\u003e \u003cli\u003eTax efficiency\u003c\/li\u003e \u003cli\u003eAccount location\u003c\/li\u003e \u003cli\u003eRole in an asset-allocation program \u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eAny investor who is considering or just curious about investment opportunities outside the traditional world of stocks, bonds, and bank certificates of deposit would be well-advised to read this book.\u003c\/p\u003e  \u003ci\u003eAcknowledgments.\u003cbr\u003e \u003c\/i\u003e\u003ci\u003eIntroduction.\u003cbr\u003e \u003c\/i\u003e\u003ci\u003eA Travel Guide to Alternative Investments.\u003cbr\u003e \u003c\/i\u003e\u003ci\u003eModern Portfolio Theory.\u003cbr\u003e \u003c\/i\u003e\u003ci\u003eThe Good, the Flawed, the Bad, and the Ugly.\u003c\/i\u003e  \u003cbr\u003e \u003cbr\u003e PART 1 The Good.  \u003cbr\u003e Chapter 1 Real Estate.\u003cbr\u003e Historical Returns and Risk: U.S. Real Estate, U.S. Equities, and International Equities.\u003cbr\u003e The Diversification Benefits of REITs.\u003cbr\u003e Benefits of Diversification: Sample Portfolios.\u003cbr\u003e Asset Location and Real Estate.\u003cbr\u003e Recommended Investment Vehicles.\u003cbr\u003e International Real Estate.\u003cbr\u003e DRW, RWX, and WPS.\u003cbr\u003e DFA International Real Estate Securities Portfolio.\u003cbr\u003e Tax Considerations.\u003cbr\u003e The Wrap-Up on International REITs.\u003cbr\u003e Your Home and the Asset Allocation Decision.\u003cbr\u003e Wrap-Up on the Home as an Investment.\u003cbr\u003e Wrap-Up on Direct Ownership.\u003cbr\u003e Summary.  \u003cbr\u003e \u003cbr\u003e Chapter 2 Inflation-Protected Securities.\u003cbr\u003e Real or Nominal Return Bonds: Which Are Riskier?\u003cbr\u003e TIPS: Doing the Math.\u003cbr\u003e Correlations with Equities and Inflation.\u003cbr\u003e Inflation, Price, and Interest Rate Risk.\u003cbr\u003e Inflation Risk.\u003cbr\u003e Price Risk.\u003cbr\u003e Interest Rate Risk.\u003cbr\u003e TIPS: Pros and Cons.\u003cbr\u003e Pros.\u003cbr\u003e Cons.\u003cbr\u003e Allocating Between Real and Nominal Return.\u003cbr\u003e Fixed-Income Assets.\u003cbr\u003e A Shifting Allocation Approach. \u003cbr\u003e Developing a Strategy.\u003cbr\u003e Implementation.\u003cbr\u003e A Shifting Maturity Strategy.\u003cbr\u003e I Bonds.\u003cbr\u003e Summary.  \u003cbr\u003e \u003cbr\u003e Chapter 3 Commodities.\u003cbr\u003e Correlation with Stocks, Bonds, and Inflation.\u003cbr\u003e Event Risk.\u003cbr\u003e A Risk-Reduction Tool. \u003cbr\u003e Portfolio Efficiency.\u003cbr\u003e Gaining Exposure to Commodities. \u003cbr\u003e Mutual Funds: QRAAX and PCRIX. \u003cbr\u003e Commodity-Related ETFs.\u003cbr\u003e Commodity-Related ETNs.\u003cbr\u003e CTAs.\u003cbr\u003e The Argument Against Investing in Commodity Producers.\u003cbr\u003e The Equities of Oil Producers.\u003cbr\u003e Implementation.\u003cbr\u003e Summary.  \u003cbr\u003e \u003cbr\u003e Chapter 4 International Equities.\u003cbr\u003e |Emerging Markets Equities. \u003cbr\u003e Correlations.\u003cbr\u003e Sample Portfolios.\u003cbr\u003e The Risks of Investing in Emerging Markets. \u003cbr\u003e Small-Cap and Value Stocks.\u003cbr\u003e Recommended Vehicles.\u003cbr\u003e Wrap-Up: Emerging Markets.\u003cbr\u003e International Small-Cap Stocks.\u003cbr\u003e Sample Portfolios.\u003cbr\u003e Recommended Vehicles.\u003cbr\u003e Summary.  \u003cbr\u003e \u003cbr\u003e Chapter 5 Fixed Annuities.  \u003cbr\u003e How Long Do Payments Continue?\u003cbr\u003e Determinants of Payment Size. \u003cbr\u003e The Benefits of Annuitization. \u003cbr\u003e Mortality Credits Make It Possible.\u003cbr\u003e When Annuities Can Be the Right Choice. \u003cbr\u003e Evidence from Academia.\u003cbr\u003e When to Purchase a Fixed Annuity.\u003cbr\u003e Inflation-Indexed Immediate Annuities.\u003cbr\u003e Summary.  \u003cbr\u003e \u003cbr\u003e Chapter 6 Stable-Value Funds.  \u003cbr\u003e Unique Risk and Return Characteristics. \u003cbr\u003e Investment Portfolios.\u003cbr\u003e Risks. \u003cbr\u003e Costs.\u003cbr\u003e Restrictions.\u003cbr\u003e Returns Change Slowly Over Time.\u003cbr\u003e Cash Flows Can Affect Returns. \u003cbr\u003e Summary.  \u003cbr\u003e \u003cbr\u003e PART 2 The Flawed.  \u003cbr\u003e Chapter 7 High-Yield (Junk) Bonds.\u003cbr\u003e Explaining the Low Correlation.\u003cbr\u003e Is Higher Yield Worth Higher Risk?\u003cbr\u003e The Importance of Equity Risk.\u003cbr\u003e Hybrid Securities and Asset Allocation. \u003cbr\u003e Evidence Supported by Theory.\u003cbr\u003e Do High-Yield Bonds Have a Role?\u003cbr\u003e Illiquid Securities.\u003cbr\u003e Other Negative Characteristics.\u003cbr\u003e Distribution of Returns Matters.\u003cbr\u003e High-Yield Bonds and Efficient Frontier Models.\u003cbr\u003e Inflation Risk.\u003cbr\u003e Asset Location.\u003cbr\u003e The Need for Diversification.\u003cbr\u003e The Historical Evidence.\u003cbr\u003e Vanguard High-Yield Corporate Fund.\u003cbr\u003e More Efficient Alternatives.\u003cbr\u003e Summary.  \u003cbr\u003e \u003cbr\u003e Chapter 8 Private Equity (Venture Capital).\u003cbr\u003e Origins.\u003cbr\u003e The Attraction. \u003cbr\u003e The Historical Evidence.\u003cbr\u003e Characteristics of Private Equity Returns.\u003cbr\u003e Venture Capital Versus Publicly Traded Securities.\u003cbr\u003e Inefficient Diversification.\u003cbr\u003e Bias in the Data.\u003cbr\u003e Perception Versus Reality.\u003cbr\u003e Private Equity’s Role in a Portfolio.\u003cbr\u003e Nonmonetary Explanations for Private Equity Investing. \u003cbr\u003e Summary.  \u003cbr\u003e \u003cbr\u003e Chapter 9 Covered Calls.\u003cbr\u003e Taxes Matter.\u003cbr\u003e Transactions Costs.\u003cbr\u003e An Alternative Strategy. \u003cbr\u003e Summary.  \u003cbr\u003e \u003cbr\u003e Chapter 10 Socially Responsible Mutual Funds.\u003cbr\u003e Defining SRI.\u003cbr\u003e Rapid Growth.\u003cbr\u003e Does Socially Responsible Investing Come at a Price?\u003cbr\u003e The “Price” of Principles.\u003cbr\u003e Summary.  \u003cbr\u003e \u003cbr\u003e Chapter 11 Precious Metals Equities.\u003cbr\u003e Risk.\u003cbr\u003e Returns.\u003cbr\u003e Correlations.\u003cbr\u003e The Hedging Value of PME.\u003cbr\u003e Positive Attributes of PME.\u003cbr\u003e Other Considerations.\u003cbr\u003e Implementing the Strategy.\u003cbr\u003e Summary.  \u003cbr\u003e \u003cbr\u003e Chapter 12 Preferred Stocks.\u003cbr\u003e Long Maturities.\u003cbr\u003e Risks and Rewards of Long Maturities.\u003cbr\u003e Call Risk.\u003cbr\u003e Credit Risk.\u003cbr\u003e Long Maturities and Call Risk.\u003cbr\u003e Dividend Suspension.\u003cbr\u003e Preferential Treatment for Corporate Buyers.\u003cbr\u003e Other Considerations.\u003cbr\u003e Tax Advantages.\u003cbr\u003e Summary.  \u003cbr\u003e \u003cbr\u003e Chapter 13 Convertible Bonds.\u003cbr\u003e The Realities of Convertible Bonds.\u003cbr\u003e Considerations.\u003cbr\u003e Shifting Asset Allocation.\u003cbr\u003e Asset Location.\u003cbr\u003e Complexity.\u003cbr\u003e Summary. \u003cbr\u003e \u003cbr\u003e Chapter14 Emerging Market Bonds.\u003cbr\u003e Risks.\u003cbr\u003e Returns.\u003cbr\u003e Correlations.\u003cbr\u003e Potential Positives.\u003cbr\u003e Additional Considerations. \u003cbr\u003e Summary.  \u003cbr\u003e \u003cbr\u003e PART 3 The Bad.  \u003cbr\u003e Chapter 15 Hedge Funds.  \u003cbr\u003e Exclusive Nature.\u003cbr\u003e Why Hedge Funds Aren’t Mutual Funds.\u003cbr\u003e Facts Versus Fantasies.\u003cbr\u003e Hedge Fund Risks.\u003cbr\u003e Wisdom and Experience, or Hope and Hype?\u003cbr\u003e The Cost of Folly.\u003cbr\u003e How High an Alpha Does a Hedge Fund Need?\u003cbr\u003e How Funds of Funds Increase Hurdles to Outperformance.\u003cbr\u003e The “Ill-Logic” of Hedge Funds.\u003cbr\u003e Long-Term Capital Management.\u003cbr\u003e The Death of Genius.\u003cbr\u003e LTCM’s Downfall: The Tyranny of Market Efficiency.\u003cbr\u003e Risk Versus Uncertainty.\u003cbr\u003e Fooled by Randomness.\u003cbr\u003e Summary.  \u003cbr\u003e \u003cbr\u003e Chapter 16 Leveraged Buyouts.  \u003cbr\u003e Summary.  \u003cbr\u003e \u003cbr\u003e Chapter 17 Variable Annuities.  \u003cbr\u003e Deferred Variable Annuities.\u003cbr\u003e Tax-Deferred Growth of Earnings.\u003cbr\u003e The Life Insurance Component.\u003cbr\u003e Ability to Annuitize.\u003cbr\u003e Other Negative Features.\u003cbr\u003e Are VAs Really That Bad?\u003cbr\u003e Sold or Bought?\u003cbr\u003e The Art of Deception.\u003cbr\u003e Variable Immediate Annuities.\u003cbr\u003e How Payments Are Determined.\u003cbr\u003e The Purpose of Immediate Annuities.\u003cbr\u003e Possible Reasons to Buy a Variable Annuity.\u003cbr\u003e 1035 Exchanges.\u003cbr\u003e Other Considerations.\u003cbr\u003e Summary.    \u003cbr\u003e \u003cbr\u003e PART 4 The Ugly.  \u003cbr\u003e Chapter18 Equity-Indexed Annuities.  \u003cbr\u003e Caveat Emptor.\u003cbr\u003e Minimums That Aren’t Minimums.\u003cbr\u003e Penalties for Early Withdrawal.\u003cbr\u003e Tax Inefficiency.\u003cbr\u003e Summary.  \u003cbr\u003e \u003cbr\u003e Chapter 19 Structured Investment Products.  \u003cbr\u003e Mondo National Bank Principal Protection.\u003cbr\u003e Notes: Product Features. \u003cbr\u003e More Efficient Alternatives. \u003cbr\u003e A Closer Look at Hypothetical FRATS.\u003cbr\u003e Why Such “Attractive” Terms?\u003cbr\u003e More Efficient Alternatives.\u003cbr\u003e Being Careful Out There.\u003cbr\u003e Summary.    \u003cbr\u003e \u003cbr\u003e Chapter 20 Leveraged Funds.\u003cbr\u003e The Proof Is in the Pudding.\u003cbr\u003e Summary.  \u003cbr\u003e \u003cbr\u003e \u003ci\u003eFinal Thoughts.\u003cbr\u003e \u003c\/i\u003e\u003ci\u003eNotes.\u003cbr\u003e \u003c\/i\u003e\u003ci\u003eGlossary.\u003cbr\u003e \u003c\/i\u003e\u003ci\u003eRecommended Reading.\u003cbr\u003e \u003c\/i\u003e\u003ci\u003eSources of Data.\u003cbr\u003e \u003c\/i\u003e\u003ci\u003eIndex.\u003c\/i\u003e  \u003cp\u003e\u003cb\u003eLarry E. Swedroe\u003c\/b\u003e is a principal and the director of research for Buckingham Asset Management, LLC (www.bamservices.com). He is the author of several books, including Wise Investing Made Simple and The Only Guide to a Winning Investment Strategy You'll Ever Need, and coauthor of The Only Guide to a Winning Bond Strategy You'll Ever Need. Swedroe received his MBA in finance from New York University. He lives in St. Louis.   \u003c\/p\u003e\u003cp\u003eExpand Your Investment Horizons \u003c\/p\u003e\u003cp\u003e\u003ci\u003eThe Only Guide to Alternative Investments You'll Ever Need\u003c\/i\u003e \u003c\/p\u003e\u003cp\u003eThere is a whole world of investments beyond traditional stocks, bonds, and bank certificates of deposit. \u003c\/p\u003e\u003cp\u003eFinancial advisers Larry Swedroe and Jared Kizer have chosen twenty popular alternative investments and provided a comprehensive description of each. They explain the nature of the investment and assess whether or not it combines well with the other assets in your portfolio. Swedroe and Kizer evaluate each type of investment in terms of: \u003c\/p\u003e\u003cul\u003e \u003cli\u003eExpected returnsp\u0026gt;\u003c\/li\u003e \u003cli\u003eVolatility\u003c\/li\u003e \u003cli\u003eDistribution of returns\u003c\/li\u003e \u003cli\u003eDiversification potential\u003c\/li\u003e \u003cli\u003eFees\u003c\/li\u003e \u003cli\u003eTrading and operating expenses\u003c\/li\u003e \u003c\/ul\u003e\t\t \u003cp\u003eThis book is a valuable resource for investors who are ready to consider expanding their portfolio beyond traditional investments. \u003c\/p\u003e\u003cp\u003e\"What a great service this book is to the investing community! As investors reach out for higher returns, many will venture into the higher-risk category known as alternative investments. For those who are so tempted, this book provides an invaluable guide.\" \u003cb\u003e—\u003csmall\u003eEDWARD R. WOLFE, PHD,\u003c\/small\u003e Professor of Finance and Director of the Financial Planning   Program Western Kentucky University\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003eFormerly an investment adviser for Buckingham Asset Management, LLC, Jared Kizer, CFA, works for an institutional money-management firm. His articles on investing have appeared in the Journal of Portfolio Management, Journal of Indexes, and on indexuniverse.com. He received his master's in finance from Washington University. He lives in St. Louis.\t   “A timely and valuable book. The authors describe twenty alternatives to investing in traditional U.S. stocks and bonds, and how they work. They tell you which ones to walk away from, which to consider (carefully!), and how to get involved. These are good-sense judgments that every investor should pay attention to.”\u003cbr\u003e —Jane Bryant Quinn\u003cbr\u003e Author, \u003ci\u003eSmart and Simple Financial Strategies for Busy People\u003c\/i\u003e  \u003cbr\u003e \u003cbr\u003e “Larry Swedroe and Jared Kizer have written a different sort of investment book, and one that has been sorely needed: a comprehensive guide to the theory, peer-reviewed literature, and practical nitty-gritty of actually deploying portfolio assets. It is a gold mine for even the most experienced of practitioners, and a vital lifeline for small investors. This volume is destined to become the most marked and Post-it–noted tome on the average investment shelf.”\u003cbr\u003e —William Bernstein\u003cbr\u003e Author, \u003ci\u003eThe Intelligent Asset Allocator\u003c\/i\u003e and \u003ci\u003eThe Four Pillars of Investing\u003cbr\u003e \u003cbr\u003e \u003c\/i\u003e“What’s missing in your library? Larry’s new \u003ci\u003eAlternative Investments\u003c\/i\u003e! You’ve already got tons of books on stocks, bonds, and funds. \u003ci\u003eThe Only Guide to Alternative Investments\u003c\/i\u003e \u003ci\u003eYou’ll Ever Need\u003c\/i\u003e is all about the future of investing, the new stuff that’ll give you an edge in the twenty-first century. An absolute must-read!”\u003cbr\u003e —Paul B. Farrell, JD, PhD\u003cbr\u003e Columnist, \u003ci\u003eDowJones-MarketWatch\u003cbr\u003e \u003c\/i\u003eAuthor, \u003ci\u003eThe Millionaire Code\u003c\/i\u003e, \u003ci\u003eThe Winning Portfolio\u003c\/i\u003e, and \u003ci\u003eThe Lazy Person’s Guide to Investing\u003c\/i\u003e  \u003cbr\u003e \u003cbr\u003e “Swedroe and Kizer provide a thorough analysis of the pros and cons of each alternative investment. They recommend ‘good’ alternatives to add to a diversified portfolio of high-grade bonds and stocks. Perhaps more important, they warn investors about the dangers of truly ‘bad’ and ‘ugly’ alternatives.\"\u003cbr\u003e —Dr. William Reichenstein, CFA\u003cbr\u003e Pat and Thomas R. Powers Chair in Investment Management, Hankamer School of Business, Baylor University \u003ci\u003e \u003c\/i\u003e  \u003cbr\u003e \u003cbr\u003e “Swedroe and Kizer have sorted through the clutter and confusion of alternative investments to provide the authoritative voice on these much hyped and frequently misunderstood financial products. Kudos to them for sharing their wisdom in a manner that can be easily understood by all.”\u003cbr\u003e —Bill Schultheis\u003cbr\u003e Author, \u003ci\u003eThe Coffeehouse Investor\u003c\/i\u003e \u003ci\u003e \u003c\/i\u003e\u003cbr\u003e \u003cbr\u003e “What a great service this book is to the investing community! As investors reach out for higher returns, many will venture into the higher-risk category known as alternative investments. For those who are so tempted, this book provides an invaluable guide.”\u003cbr\u003e —Edward R. Wolfe, PhD\u003cbr\u003e Professor of Finance and Director of the Financial Planning Program, Western Kentucky University  \u003cbr\u003e \u003cbr\u003e “At the risk of being clichéd, Swedroe has done it again! I make it a point to read every book written by him. This time, it’s all about alternative investments, and Swedroe, running true to form, tells it exactly as it is. He pulls no punches, he holds nothing back. If he doesn’t like something, he says so. If emerging markets equities are downright risky, he doesn’t mince his words or try to put a puffy spin on it. That is what makes reading Swedroe so fascinating.”\u003cbr\u003e —Stuart Kahan\u003cbr\u003e Executive editor, \u003ci\u003eCPA Wealth Provider\u003c\/i\u003e  \u003cbr\u003e \u003cbr\u003e “For investors looking to go beyond an S\u0026amp;P 500 Index fund and a bond fund—and every investor should—don’t make a move until you’ve read \u003ci\u003eThe Only Guide to Alternative Investments You’ll Ever Need\u003c\/i\u003e. Full of historical evidence, practical advice, and specific investment ideas, this book provides a blueprint for what to include and what to avoid in an intelligently constructed portfolio.”\u003cbr\u003e —Robert Brokamp\u003cbr\u003e Editor, The Motley Fool’s Rule Your Retirement service    \u003cbr\u003e \u003cbr\u003e “As a financial journalist, I’ve been recommending Larry Swedroe’s books for years because they are filled with invaluable advice that can make any reader a more successful investor. I will now be adding \u003ci\u003eThe Only Guide to Alternative Investments You’ll Ever Need\u003c\/i\u003e to my favored reading list.\u003cbr\u003e —Lynn O’Shaughnessy\u003cbr\u003e Financial journalist and author, \u003ci\u003eThe College Solution\u003c\/i\u003e\u003c\/p\u003e","brand":"Bloomberg Press","offers":[{"title":"Default Title","offer_id":47990304506085,"sku":"NP9781576603109","price":29.95,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781576603109.jpg?v=1761787279","url":"https:\/\/k12savings.com\/products\/the-only-guide-to-alternative-investments-youll-ever-need-isbn-9781576603109","provider":"K12savings","version":"1.0","type":"link"}