The same could be said for alternative investments these days. The pitch for alternative investments has been that they generate high returns with lower correlation to the broader stock market and economy. Throw in the (behind WSJ paywall) "hope and exclusivity" of these strategies and you have a potent pitch. So-called alternative assets include a wide range of assets and strategies including most prominently private equity and hedge funds. These funds are now finding ways to open their doors to smaller, more retail investors.
Why is that? Many of the biggest private equity investors have come public and have transformed themselves into broadly diversified asset managers. The raison d'etre of publicly traded asset managers is to grow assets under management, hence earnings. The "retail-ization" of alternative investments represents a big part of this strategy. For example at least one private equity manager is trying to get their funds included in a 401(k) plan.
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