SWAG is a new term used to describe silver, wine, art and gold, which are among the most commonly chosen alternative investments. The Telegraph article describes how these asset classes are regularly outperforming bonds and equity investments and are, therefore, proving increasingly popular among individual and institutional investors.
AAA's analysis partner, Anthony Johnson, stated that the trend isn't surprising and a growing section of the population are interested in swapping their hard-earned cash for something much more tangible than stocks, shares and bonds - particularly following the recent economic collapse. He stated, “There was a period when investors could dependent on the value of their investments, but those days are gone, for now. However, when you purchase something tangible, or with intrinsic value, like trees, gold and silver, for example, the risks are reduced and the assets stand up to economic volatility much more convincingly.
Telegraph reporter, Richard Evans points out that the benefits are clear - in that silver, wine, art and gold have all outperformed shares and bonds over five years, seven years and even ten years. He cited former Moore Capital investment expert Joe Roseman as having first come up with the 'SWAG' moniker. He predicts that these asset classes will be the best kinds of investments to opt for in the coming years, which he says will be ruled by a period in which inflation will remain high, but growth will remain elusive.
The analysts at AAA agree that tangible assets are increasingly attractive as these condition prevail, although it advocates ethical investments, such as investing in sustainable forestry programs run by firms like Greenwood Management in Brazil. “Forestry investment provides investors with an asset that hedges against inflation, but also helps to reduce deforestation and stimulate a green economy,” claimed Mr Johnson.
About Alternative Asset Analysis:
The remit of Alternative Asset Analysis is to analyse and provide news on the global performance of a wide range of alternative asset classes including, but not restricted to, commodities, real estate, forestry, foreign exchange, hedge funds, private equity and venture capital.
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