I believe, in fact, that someone heavily invested in the public equity markets (whether directly through stocks or through stock mutual funds) and other widely traded or held asset classes may be irresponsible for not investing in startups. This is because the concept of diversification is commonly misunderstood to mean that as long as you invest in a broad array of stocks you will be well diversified.
The JOBS Act of 2012 gives all investors opportunities to invest in alternative assets via equity crowdfunding. This means all investors can invest in seed-stage startups and growing private companies on crowdfunding portals and broker-dealer platforms as of May 2016.
A recent article in Forbes.com makes a good case for investing in emerging markets as a smart way to help diversify an investment portfolio. “Emerging markets” are essentially poor countries that are getting less poor. Sometimes also referred to as developing, countries, they are, according to Forbes, “fast becoming the driver of global growth.” In […]