Thomas-Brock-18-Why might a person benefit from investing in alternative investment classes
In this video, Thomas Brock explains that investing in uncorrelated assets like cryptocurrency can enhance portfolio efficiency by improving return potential relative to the risk assumed.
Video Transcript
When you have an opportunity to invest in an asset that is completely uncorrelated to some of the traditional securities like stocks and bonds, it's usually a very smart move because it can greatly improve the efficiency of your portfolio. And by efficiency, I mean the return potential per unit of risk that you've assumed. One of the assets I have in mind as I'm saying all of this is cryptocurrency.
Bitcoin, Ethereum, etc. While they are highly volatile, when you combine those assets with traditional securities, portfolios are shown to be more efficient.
