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High-net-worth investors are pulling out of the stock market. Here’s where they’re funneling their cash instead
Yahoo Finance· 2025-12-20 12:13
Core Insights - Gold has increased over 60% in value this year, reaching approximately $4,350 in mid-October, indicating strong investor confidence in the commodity compared to the stock market [1][3] - The appeal of gold lies in its historical role as a store of value, being independent of any single country or currency, making it a preferred choice during economic stress or geopolitical uncertainty [2][4] - Investors, particularly those in the Tiger 21 group, are shifting towards more cautious portfolio strategies, increasing allocations to cash, fixed income, and gold, while slightly pulling back from stocks and real estate [3][5] Gold Market Dynamics - The performance of gold reflects a defensive investment posture as Wall Street faces uncertainties, including potential AI bubbles and interest rate changes by the Federal Reserve [4] - Gold IRAs are becoming popular as they allow investors to hold physical gold within a retirement account, combining tax advantages with the protective benefits of gold investment [8] Bitcoin as an Alternative Asset - Bitcoin is gaining traction as a mainstream investment, viewed as a secure asset alongside gold, despite its market size being only a tenth that of gold [10] - The volatility of Bitcoin is attributed to its lack of backing by central banks, but its built-in scarcity (capped at 21 million) adds to its appeal [11] - Investors are optimistic about Bitcoin's potential rebound after a recent decline from an all-time high of around $126,200 to approximately $85,500 [10] Real Estate Investment Trends - There is a noted pullback in real estate allocations among high-net-worth investors, yet real estate remains a reliable asset class for wealth preservation, especially during inflationary periods [19][20] - Crowdfunding platforms like Arrived and Mogul are providing accessible ways for investors to engage in real estate, allowing fractional ownership and income generation without the burdens of traditional property management [21][23]