The Alternative Answer

March 4, 2013
For decades, investors have taken the “safe” route (“long-only domestic stock and bond portfolios”), which has proven inadequate in today’s economy. How then to invest, when stocks, bonds, and the economy are all tanking? Rice, alternative investment editor of Bloomberg TV, advocates strategies that have been making money for wealthy investors since the ’80s, and that are now available to all. Using alternative methods, investors can increase current income and bulletproof their portfolios against the next economic decline. These plans—based on investment in managed futures, real assets, venture funds, companies based in emerging economies, and natural resources—are effective because, as time passes, “a portfolio of them deliver and more diverse streams... than do standard investments.” Rice takes readers through a crash course in alternative investments and the creation of a “panoramic, risk tolerant portfolio” and how typical investors can take a better tack. Rice lucidly explains complex investment strategies and less familiar financial terms, and the book is worth buying for the clear, cogent glossary and finance tutorial alone. While most readers will be skeptical about a plan that departs this much from the accepted wisdom, this is a great start for the adventurous.

April 1, 2013
In these hard economic times, in which savings-account yields are at an all-time low, stock-market volatility is a major concern, and real-estate appreciation is a thing of the past, Americans looking for alternatives to preserve or grow wealth may find this book to be a real eye-opener. Rice maintains that the key to long term wealth creation is loss avoidance, and he discusses options for building portfolios with built-in risk protection. The average consumer may not be aware that there are many other viable investment options besides traditional stocks and bonds, including private equity, venture capital, and more. Although hedge funds may have gotten a black eye during the Madoff era, he shows how active risk management using hedging strategies and a panoramic portfolio can help offset potential losses during times when stocks and bonds lose value. The writing is basic enough for novice investors, and financial-concept examples are easy to follow. In this fresh look at the old investment rules, the alternatives presented are convincing enough for readers to consider.(Reprinted with permission of Booklist, copyright 2013, American Library Association.)