Thursday, November 20, 2014

The Specialized Alternative Investment Analyst

By Mayra Pierce


Investment is a great way of ensuring long-term returns and a relatively financially safe future. While most people are familiar with the usual investment in stocks, bonds and cash, there is an alternative path: a career as an alternative investment analyst. While the term is still not precisely defined, there are numerous types of goods falling under this category: from wine to woods, from stamps to watches, from numismatic coins to oil and gas!

For many firms, one tenth of their investment is alternatively invested in these alternative assets, and this job is carried out by the analysts trained specially for this type of work. The novelty of the branch provides great career options for those looking to try themselves out in the investment business with less competition and significantly lower pressure. The job of the analysts in asset classes, however does not differ greatly from that of a security analyst.

Because of the competitive and stressful nature of the traditional financial market, putting money into asset classes other than stocks, bonds, and cash is a fantastic opportunity for those wanting to try investing without these setbacks. The skills required, however, are not very different to those looked for in the investment analyst job market. Instead of analyzing and looking at the changes in prices of traditional assets, these analysts watch the prices of tangible goods, and analyzes the potentially profitable fields. In case of wine, or antiquities, a well-chosen asset's price can only go up! Some possibilities in this area have been present for ages, like gold and silver, while others are relatively new, like forests.

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.

The alternative way is safer than the traditional way since this last one, provides overcrowded and unstable stock exchanges, such as the London Stock Exchange and Wall Street. After the still palpable economic crisis of 2008, the demand on investment in palpable assets keeps on increasing. Therefore, firms have been re-allocating a part of their profits towards this practice.

The best way to obtain education for this career is through the the association abbreviated as CAIA. This non-profit organization has the vision of educating young minds for the profession of alternative investment analysis, and has a twelve-year-old tradition.

This non-profit organization was founded in 2002 and it is the leader in the field world-wide. While initially present only in the United States, today they gather around 6,900 analysts worldwide in more than 80 countries. A combination of a quick business mind, a relevant education and enough experience is a certain way of ensuring an exciting, stimulating and profitable career.




About the Author:



No comments:

Post a Comment