Investor Jonathan Hoenig believes that intellectual property and particularly royalties will be to this generation what REITs were to the 90's and commodities were to the 2000's.
The advantage of royalties? Royalties can be steady payers regardless of what the stock market is doing, some yielding as much as 20% return.
"Music royalties should be on every investor's checklist these days," Hoenig says, based on their potential for uncorrelated absolute return.
As options such as music royalties have grown, alternatives are becoming mainstream among investors.
Click here to watch the YAHOO! Finance News Video that features Jonathan Hoenig discussing these very observations, and read the accompanying article, "Jennifer Lopez's bottom line: How to share in her earnings".
As with any investment, each investor must conduct her or his research to understand and assess the royalty asset prior to making a decision to invest.
Royalty Insider presents articles and news for information purposes only and should not be construed as a recommendation, solicitation or advice.