Tips For A Career As An Alternative Investment Analyst

By Mayra Pierce


To guarantee a certain level of safety in future finances, investment is the answer, for it ensures long-term return. Stocks, bonds, and cash are the most common objects of investment, but not many people have explored the chances of a career as an alternative investment analyst. Although the term used is an ambiguous one, there can be named several items that would qualify, such as wine, woods, stamps, watches, numismatic coins, oil, and gas.

Unlike bonds, stocks or cash, the subjects here are tangible: commodities, real estate or derivatives. This option also offers many different hedge funds to invest in. A professional on alternative tracks and analyzes chances in this matter. Researches have stated that there are firms canalizing 10% of their profits towards this activity.

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.

As an analyst in this area, one is usually bound to huge companies and highly competitive markets, while this option provides more chances for an individual career or freelancing. Putting money into asset classes other than stocks, bonds, and cash sometimes require much less start-up funds than traditional ones.

Generally speaking, an analyst has to be related to great companies and a high level of competition. In the other hand, analysts who operate in the asset classes are more likely freelancers with the possibilities of developing their individual career. Unlike the case of traditional investments, the alternative ones will appear with a low range of minimum requirement.

The CAIA, the chartered association for these analysts, offers the best way of education for this professional field. With 12 years of history, this organization has no profit intended and holds as a premise to educate young people in the alternative investment analysis matter. This institution leads with almost 7,000 members from around the globe. Due to the excitement, stimulation and the profits conveyed by putting money into asset classes other than stocks, bonds, and cash, it is the best option for anyone who just knows how to recognize and take the better chances as they show up to them and desires to trade beyond papers and numbers.




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