Alternative investments are those outside of the three traditional asset classes: stocks, bonds or cash. Such alternative investments also can give diversity to your portfolio, as well as provide a safe haven during a crisis similar to the one in 2008, where stocks plummeted but interest rates were too low to make most bonds or other interest-bearing investments attractive. A notable provider of alternative investment exchange-traded funds (ETFs) is Direxion.
Direxion is an investment firm that was founded in 1997 as a mutual fund provider. It now offers more than 50 alternative ETFs, mostly of the leveraged variety. For example, these funds are designed to be able to triple, earn the inverse of, or earn triple the inverse of the relevant index in the course of a single day. This sort of investing is the complete opposite of the trend-following, long-term approach we take in Successful Investing. But if you are interested in trading aggressively and frequently, with a willingness to monitor your investments daily, Direxionâ€™s ETFs can be used to potentially make — or lose — a lot of money quite quickly.
Read more about how Direxion uses alternative strategies to benefit its investors at Eagle Daily Investor.