Investors Hunt for Alternatives

Investors looking for options besides stocks and bonds have plenty of choices in an uncertain market, but experts warn that a move too far into commodities, real estate or hedge fund-style products could yield more long-term damage than short-term help.

With the stock market essentially flat for the year, the bond market in limbo ahead of an imminent rate hike from the Fed and money markets offering paltry returns, investors are getting pitches for everything from precious metals to collectible bobble head dolls sold on eBay (EBAY Quote).

While so-called alternative investments, from real estate to hedge funds, are no longer the exclusive domain of the very rich, advisers and financial planners say variations to the typical portfolio template of 60% stocks and 40% bonds should be made with an eye to conserving capital, rather pocketing healthy gains. ...