Nov 26, 2014

Tips For A Career As An Alternative Investment Analyst

By Mayra Pierce


When talking about investment, the first thing that comes to mind is the well-known practice of investing in stocks, bonds and cash as a means of acquiring money in the long run. However, a less popular and equally lucrative practice, are alternative investments, usually done by the specialized alternative investment analyst.Unlike the traditional form, this one does not relate to putting money into stocks, bonds, or cash, but is associated with real estate, derivatives, commodities, hedge funds and many others.

The subjects are not bonds, stocks or cash, but 'palpable' assets, such as different commodities, real estate or derivatives. There are also many hedge funds invested in. The trained analysts, therefore look for and analyze opportunities in this field, and, according to research, many firms choose to put in 10% of their resources into this practice.

The analysts who operate in asset classes, however does not have to follow the ups and downs of the stock market, but instead should look at the 'real prices' moving up and down in the world. Some of these investments, like forests, are relatively new, and therefore analysts do not have much research data at their disposal, while some have a very long tradition, like precious metals.

Those in this industry, like any other analyst, must possess the skills to quickly and effectively determine the costs and benefits of a decision, and have a sharp eye for business opportunities. While in traditional form, analysts are limited to stocks and bonds; in putting money into asset classes other than stocks, bonds, and cash, the possibilities are endless! This, and the low correlation with the usual asset prices, are reason why many experts favor this business or option over traditional.

Furthermore, stock exchanges around the world, like the London Stock Exchange, or Wall Street are not only overcrowded with competition but also quite unstable, and therefore the alternative path provides more safety and security. Following the economic crisis of 2008, whose consequences are still felt by many, there has been an increased need for investment in tangible goods. This has motivated many large firms to re-allocate a portion of their investments in this direction.

With highly competitive environments like Wall Street or the London Stock Exchange, it comes as no surprise that many experts choose 'the alternative way'. The fluctuating and uncertain nature of the stock exchange markets, especially after the Wall Street crash, is providing an incentive for large firms to allocate some of their resources in other directions.

The best way to obtain education for this career is through the the association abbreviated as CAIA. This non-profit organization has the vision of educating young minds for the profession of alternative investment analysis, and has a twelve-year-old tradition.

It is the leading institution that consists of nearly 7,000 members from all corners of the world. This exciting, stimulating and profitable career is a fantastic choice for all sharp business minds who wish to trade in more than just paper and number, who desire a more dynamic career than that of looking at a screen, and who are confident that they know a good business opportunity when they see it!




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