An
alternative investment is an
investment in asset classes other than
stocks,
bonds, and
cash. The term is a relatively loose one and includes
tangible assets such as
precious metals, art, wine, antiques, coins, or stamps and some financial assets such as real estate,
commodities,
private equity,
distressed securities,
hedge funds,
carbon credits,
venture capital, film production and
financial derivatives. Investments in real estate and forestry are also often termed alternative despite the ancient use of such real assets to enhance and preserve wealth. Alternative investments are to be contrasted with
traditional investments.