Inflation fears can be offset by focusing on alternative investments

Just as the financial crisis seems nearly over, new storm clouds are gathering on the horizon, with ...

Just as the financial crisis seems nearly over, new storm clouds are gathering on the horizon, with rising petrol and food prices fuelling growing inflation fears. An asset allocation with a clear focus on alternative investments can help offset the threat. Hedge funds did well in the first quarter of 2008. Prices fell substantially in some individual strategies, but products diversified across all strategies outperformed equity markets by a considerable margin. Their highly flexible nature makes them less vulnerable to unexpected price shocks, giving hedge funds the capacity to profit fr...