GO
Loading...

What Pros Say: Hedge And Look For Alternatives

Smart investors need to look at savvy alternatives—and in some cases that's anything but stocks.That's the verdict of some investment pros at Charles Schwab's 19th annual IMPACT conference of financial advisors in Boston this week.

"It's about bringing a new array of strategies to investors," Rick Lake, portfolio manager of Aston Lasso Alternatives Fund, told CNBC in a three-person round table discussion. Lake says investors are looking for alternative strategies, such as short selling, hedging and commodities.

Tom LaPointe, portfolio manager for the Third Avenue Focused Credit Fund, agrees, saying his focus is on "the alternative space", in areas such as distressed debt, high yield bonds.

"Investors are looking for income," says LaPointe, adding that investing in bonds is "condemning clients to 2-percent returns for the next ten years"

Thomas Meyer, CEO and Chairman of Meyer Capital Group Wealth Management, adds that his goal is to reduce risk for clients in the current environment.

"Individual investors don have any appetite for risk at this point," says Meyer, who. among other things, is trying to profit from the declining dollar and emerging market growth, while also emphasizing capital preservation.

Earnings Central

Commodities

Currencies

Mutual Funds

  • Dollars are pouring into China again despite worries about the country's slowing economic growth. China's economy also still has its doubters, as do broad swaths of its stock market. Much of the worry centers on how well China can navigate a slowdown in its economic growth.

  • Fund managers may face tougher scrutiny by regulators than planned after their lobbying against a first proposal backfired, sources said.

  • NEW YORK— If bonds start to tumble, should I sell my bond mutual fund? It's a question investors are asking as expectations rise for a more volatile bond market. Inventories of investment-grade and high-yield bonds at Wall Street banks and other primary dealers are now just 20 percent of where they were in 2007, according to State Street Global Advisors.

Bonds