Are Alternative Investments Living Up to the Hype?

We've all heard the whispers, perhaps even the enthusiastic shouts, about "alternative investments." Real estate, private equity, venture capital, hedge funds, collectibles, even the wild world of crypto—they're often painted as the secret sauce for a truly diversified portfolio, promising returns that traditional stocks and bonds simply can't deliver. The narrative is compelling: imagine investments that march to their own beat, offering a shield against market volatility and a chance for brilliant managers to uncover hidden gems. But let's hit pause for a moment. Is this vision always the reality? These are the asset classes that investors (and their advisors) like to name-drop when they want to feel a little more Wall Street and a little less Warren from accounting. But here’s the kicker: just because something is labeled “alternative” doesn’t mean it’s automatically better—or even different. In his recent blog post, the legendary finance professor Aswath D...