Tags: bob rice | alternative | investment | inflation

'Alternative Answer' Author Bob Rice to Moneynews: Investors Must Guard Against Inflation Spike

By    |   Friday, 24 May 2013 12:33 PM

Author Bob Rice urged investors who embrace alternative strategies to guard against a devaluation of the currency and a major spike in inflation amid a "tremendous risk" in the bond market.

"The most important thing when you're looking at an alternative investment … is to look at exactly what the strategy is," Rice told Newsmax TV in an exclusive interview.

"One of the biggest myths about alternative investing is that all hedge funds are kind of more or less doing the same thing. That is fundamentally, fundamentally wrong," said Rice.

Watch our exclusive video. Story continues below.



Editor’s Note: Put the World’s Top Financial Minds to Work for You

Rice went on to say that John Paulson "had a pretty mediocre track record before he got lucky with subprime" and he's had a terrible track record since, but he's not following the kind of strategy that most average investors would want to follow. (Paulson became a billionaire by short selling subprime mortgages in 2007 and made $3.7 billion that year, according to Wikipedia.)

"What a lot of people could do right now is go into a … mutual fund that's running a hedged strategy," said Rice, general managing partner at Tangent Capital Partners LLC and the author of "The Alternative Answer: Non-Traditional Investments That Drive the World's Best Performing Portfolios."

Editor’s Note: To order 'The Alternative Answer' at a great price — Click Here Now.

"You don't have to go into a hedge fund to get the benefit of hedged strategies. You can go right now," he said.

"There are a lot of new mutual funds with really good managers running low fees and that will allow you to ride the upward cycles of the market, but diminish the downturns," he said.

"It's really diminishing the downturns, saving the money that you already have, that is so important for average investors."

He also stated that there's "tremendous risk" in the bond market.

Investors should embrace alternate strategies that "generate really good current income without the kind of risk that's in the bond market right now," he said.

"A new idea is something called peer-to-peer lending, which is a really cool and interesting way to make some money," he said.

"It is kind of what it sounds like. It's individuals lending to individuals through a Web-based platform, which is essentially taking the place of a bank. These things now have become pretty credible."

Editor’s Note: Put the World’s Top Financial Minds to Work for You

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Author Bob Rice urged investors who embrace alternative strategies to guard against a devaluation of the currency and a major spike in inflation amid a "tremendous risk" in the bond market.
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Friday, 24 May 2013 12:33 PM
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