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AAA: Debt Downgrade Could Spark More Alternative Investments

The downgrade of US sovereign debt by Standard & Poor’s is likely to further damage faith in equity markets, according to Alternative Asset Analysis (AAA).
Boston, MA , United States (pr4links.com) 13/08/2011
Boston, MA, August 13, 2011 -- The downgrade of US sovereign debt by Standard & Poor’s is likely to further damage faith in equity markets, according to Alternative Asset Analysis (AAA).

The alternative investment advocacy group’s analysis partner, Anthony Johnson, said, “We expect the appetite for alternative investments to rise in the wake of the US debt crisis, as equities seem like an increasingly risky bet.”

Recent stock market crashes in response to fears about US debt and European economic concerns, have left many investors seeking alternative investments in order to minimize the impact of any further crashes on their portfolios.

Wall Street analysts have claimed that the downgrade of the US’s sovereign debt from its AAA rating, will dampen investors’ willingness to take risks in their portfolios. Although most analysts feel that the downgrade will not affect equities over the long term, they do believe that more investors will want to diversify the risk in their portfolios, by investing in more alternative assets.

“Alternative assets can offer a far less risky and highly lucrative option to investors,” explained Mr Johnson. He added: “Alternatives also offer more options for ethical investments, such as investing in projects like sustainable forestry in Brazil through businesses like Greenwood Management, which helps to reduce deforestation in Latin America while providing a low-risk, high-return investment strategy.

Other ethical alternative investment options include impact investing, which involves pledging cash to help small businesses in developing countries, in exchange for returns when the firms start to become profitable. These kinds of investment opportunities are growing in popularity and steps are being taken to clarify and regulate the impact investing process for anyone interested.

AAA said it hopes that the recent concerns about debt in Europe and the US drive more investors to put their cash in emerging market projects. The organization is particularly focused on the benefits of ethical programs that can help communities flourish and protect the environment.

Contact:
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-939-9596
info@alternativeassetanalysis.com
http://www.alternativeassetanalysis.com

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Contact

Anthony Johnson

71 Commercial St
Zipcode : 02109
617-939-9596
info@alternativeassetanalysis.com
http://www.alternativeassetanalysis.com