The Comprehensive Guide to

Passive Income Investing


Learn the secrets of how Paul Tracy generates over $XXX,XXX per month in passive income!

How to Become Financially Independent Through Passive Income Investing

What is an Alternative Asset?

An alternative asset is an item that has intrinsic value, but is not traditionally considered a financial asset.

How Does an Alternative Asset Work?

Alternative assets are best defined by their absence from the capital markets. Their valuation is subjective and based primarily on popular demand. Classic examples of alternative assets include works of art, antiques, collectors' items and coins.

Why Does an Alternative Asset Matter?

Alternative assets are a useful diversification tool. Unaffected by movements in the capital markets, their values generally grow over long periods of time. This means that they are characterized by low liquidity. This, combined with the subjective nature of their valuation, makes them difficult to incorporate as part of a traditional investment portfolio.

Alternative assets can be a great hedge for investors heavily involved in the stock markets since they're not tied to Wall Street's ups and downs.

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Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.