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Investing Basics
Stressed investor watching the stocks market. shutterstock.com

Stocks near record highs, bond market acting wild – if you have $10,000 to invest now, experts say you should be looking here

For decades, mainstream advice for long-term investors has been pretty boring: a 60/40 split between diversified stocks and bonds. And while this method isn’t necessarily “broken,” recent events have got a lot of people second-guessing a $10,000 allocation.

​Understandably, with a stock market that keeps hitting all-time highs — and never-ending headlines warning of an AI bubble — it doesn’t feel like a smart move in a mid-euphoric rally.

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​On the other hand, bonds aren’t living up to their supposed reputation for stability. Despite the U.S. Treasury increasing its bond buyback program, yields keep hitting multi-year highs as the global selloff intensifies.

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​That begs the question: What’s the wisest thing to do if you have $10,000 on the side ready to invest?

​First off, a bit of context. Data from RBC Global Asset Management shows it’s statistically riskier not to invest in the market at all-time highs. After analyzing over 1,325 all-time highs for the S&P 500 since 1950, researchers found the chances of a severe market decline (10% or more) were about 9% one year later. Those odds decrease to 2% three years later and 0% after five years.

​As for bonds, not every economist is losing their cool, at least not right now. As the financial research firm Capital Economics told The New York Times, “The recent sell-off in global government bond markets is significant, but it does not yet amount to a crisis.” If you believe geopolitics and macroeconomics will at least settle down in the long term, then bonds could actually be an attractive pickup today.

​All that being said, let’s say you’re not sold on the idea that $10,000 in U.S. stocks and bonds is the best strategy. Luckily, there are plenty of attractive alternatives that might grow your wealth in this chaotic environment.

Semis, sapphires and water systems

Bloomberg recently scouted out wealth managers for their picks of the most tantalizing non-traditional ideas for a $10,000 investment. According to respondents, three options deserve a second look.

​The first suggestion — South Korean stocks — isn’t exactly a secret. As the Asian epicenter for AI chipmakers, this nation has been in the news recently for the wild swings in its Korea Composite Stock Price Index (KOSPI).

​Even with a dramatic selloff this year, the KOSPI is still way up in 2026 with a year-to-date performance of 66%. Interestingly, Bloomberg analysts argued it’s still a relative bargain considering its current valuation and the key role South Korean companies SK Hynix and Samsung play in the semiconductor market.

​Just keep in mind that the KOSPI will likely trade erratically now that borrowed funds and leverage influence the Korean market.

​For those who want to be a bit more conservative, why not go with water? AI capex is debatable, but countries need to invest in their water systems as they grapple with increased heat and droughts. To take advantage of the estimated $13 trillion headed for water-related investments by 2040, Bloomberg analysts recommended looking into ETFs like Invesco S&P Global Water Index ETF (CGW) or First Trust Water ETF (FIW).

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​Lastly, while luxury handbags aren’t a necessity, Bloomberg singled out high-end goods as another opportunity for a $10,000 investment. That doesn’t mean running out and buying a Birkin bag. Instead, analysts argue this may be an opportune time to buy into companies before favorable macroeconomics mint more billionaires. Bloomberg’s respondents advised researching luxury retailers that have three winning factors: brand equity, a proven management team and exposure to regions like Southeast Asia and the Middle East with a growing upper class.

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Are commodities and crypto contrarian plays?

​If fears about bonds and an AI bubble are still keeping you up at night, billionaire economist Ray Dalio has a few other ideas to consider with your $10K.

​In a new LinkedIn post on the current bond crisis, the Bridgewater Associates founder singled out two assets he thinks will most benefit from currency devaluation: gold and Bitcoin.

​While including Bitcoin may not seem all that conservative, Dalio made his case by focusing on the deficit issues throughout the world, claiming, “That is why I expect a similar debt and currency devaluation adjustment process in most economies, which is why I expect non-government-produced monies like gold and Bitcoin to do relatively well.”

​As for how much Dalio recommends putting into these assets, he said only “a bit” of Bitcoin, while suggesting a more concrete 10% to 15% allocation to the precious metal.

​Despite phenomenal long-term returns, gold and Bitcoin have recently fallen out of favor as the AI boom captured a huge chunk of the world’s capital. Year-to-date, gold’s price is flat, and Bitcoin is down 11%.

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Eric Esposito Freelance Contributor

Eric Esposito is a freelance contributor on MoneyWise who loves making financial topics accessible and understandable to readers. In addition to MoneyWise, Eric’s work can be found in publications such as WallStreetZen and CoinDesk.

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