Oct 22, 2025
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The U.S. stock market recently hit new highs, but according to Michael Sonnenfeldt, founder of Tiger 21 — an exclusive network of ultra-high-net-worth investors — the ultra-rich aren’t chasing the hype.
“Actually, they just pulled back a couple points in the last quarter from the stock market and from real estate,” Sonnenfeldt told CNBC, noting that the average Tiger 21 member controls more than $100 million.
So where is their money going?
Private equity remains a “strong” holding, he said, but members are increasingly allocating to areas that were once ignored. “For the first time, cash is coming up a little, fixed income is coming up a little and gold and Bitcoin.”
The shift points to a more defensive posture. A stronger allocation to cash and fixed income signals a renewed appetite for liquidity and steady yields after years of near-zero interest rates, while growing exposure to gold — and even Bitcoin — reflects a search for alternative stores of value.
Gold
Sonnenfeldt says his members are approaching their portfolios with a little more caution these days. Naturally, when they've created as much wealth as they have, he adds, preservation is their highest priority.
That makes gold a natural destination. The precious metal has served as a store of value for thousands of years. Investors often flock to it during periods of economic stress or geopolitical uncertainty — pushing prices higher.
Over the past 12 months, gold has climbed more than 40% — and more gains could be on the way. Both Goldman Sachs and JPMorgan forecast that gold could hit $4,000 an ounce by 2026.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an option for those looking to help shield their retirement funds against economic uncertainties.
When you make a qualifying purchase with Priority Gold, you can receive up to $10,000 in precious metals for free.
Cash
During periods of short-term market volatility or economic uncertainty, liquidity can become a highly valuable asset.
Investors can use their cash position to buy assets at a lower price, fund private deals or rebalance their portfolio without having to sell other investments at a loss.
You can shore up your own reserve with high-yield cash accounts or certificates of deposit.
A Wealthfront Cash Account can provide a base variable APY of 3.75%, but new clients can get a 0.65% boost over their first three months for a total APY of 4.40% provided by program banks on your uninvested cash. That’s over ten times the national deposit savings rate, according to the FDIC’s September report.
Plus, Wealthfront charges no account fees. With full access to your money at all times, Wealthfront also offers fast (and free) transfers to eligible accounts 24/7.
Fixed income
Fixed-income investments, when used strategically, can provide a steady stream of cash flow and act as a buffer against stock market swings.
For example, you can stagger bonds at different maturities to lock in current yields while keeping your cash flexible.
You can transfer funds to your Wealthfront Cash Account, and explore their fixed income options, such as an automated bond ladder.
Whether you’re saving for a big expense or simply waiting to deploy your funds into other investments, an automated ladder allows you to earn more on your cash — with $0 state taxes.
Private equity
Private equity offers investments that are not typically driven by short-term market sentiment, which adds another layer of diversification for your portfolio.
But this asset class has often been reserved for high-net-worth individuals and highly focused private equity investment firms.
But new platforms are changing that.
With Fundrise, for instance, you get access to an expansive portfolio of alternative investment opportunities spanning real estate, private debt and venture capital.
With over $3 billion in assets under management, Fundrise offers an accessible way to diversify your portfolio and potentially yield dividends every quarter.
To get started, all you have to do is share some details about your financial background and investing style, then Fundrise will build a portfolio for you that aligns with your goals and risk tolerance
*We earn a commission for this endorsement of Fundrise.
Bitcoin
Once considered a niche asset, Bitcoin has steadily moved into the financial mainstream.
“Bitcoin as a market is still only a 10th the size of gold, but they both are secure assets in members’ minds,” Sonnenfeldt said. “For the first time, people aren't talking about Bitcoin just as speculation, but actually an alternative asset that can be held during tough times. Not everybody believes in it, but those that do are making a big splash.”
Part of Bitcoin’s appeal is its built-in scarcity. Like gold, Bitcoin can’t be created at will by central banks. Instead, its maximum supply is capped at 21 million by mathematical algorithms.
For those looking to hop on the Bitcoin bandwagon, platforms like Robinhood Crypto allow users to buy and sell crypto with as little as $1 without any trading fees or commissions.
Robinhood Crypto has the lowest trading cost on average in the U.S. — meaning you could get up to 1.6% more crypto compared to trading on other platforms.
‘Overwhelmingly weighted’ in this asset — and Buffett’s simple strategy
Sonnenfeldt stressed that a slight pullback from stocks doesn’t mean his members are abandoning them.
“We're still overwhelmingly weighted for the mid- and long-term in equities. So there's long term bullish, but in the short term, it's a little choppy water, so people are trying to steady the boat in a rocky road,” he said.
He noted that many Tiger 21 members built their fortunes as entrepreneurs, where outsized returns were possible, but sustaining those gains as investors is far more challenging. To illustrate the point, he invoked Warren Buffett’s success — and his famously simple strategy.
“You take Warren Buffett … his track record has been 20% but he's been doing it for 65 years. Our members — to become Tiger members — had higher returns than 20% and they could never duplicate those returns as investors,” Sonnenfeldt said.
“So this divide between being an entrepreneur for five or 10 or 20 years and creating extraordinary wealth and then what do you do with it? It's the reason why Warren Buffet has told his heirs to put it in the S&P, because even they won't be able to get the benefit of his track record going forward.”
Buffett himself has often said, “In my view, for most people, the best thing to do is own the S&P 500 index fund [4].” He’s even written it into his estate plan, directing that 90% of his wife’s inheritance be placed in “a very low-cost S&P 500 index fund” after his passing.
An S&P 500 index fund gives investors instant exposure to 500 of America’s largest companies across a wide range of industries, providing diversification without the need for constant monitoring or active management.
The beauty of this approach is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns — a popular app that automatically invests your spare change.
Signing up for Acorns takes just minutes: link your cards and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio. With Acorns, you can invest in an S&P 500 ETF with as little as $5 — and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.
A finer alternative
Although Sonnenfeldt didn't mention it in this interview, fine art is an example of another asset class that elite investors buy into.
Contemporary art, or pieces produced after 1945, show especially strong annualized price appreciation at 14% from 1995 to 2023 compared to the S&P 500's 9.6%, according to the CAIA association.
In the past, you had to be ultra-wealthy to invest in art, but now services like Masterworks have opened the door to art investing. So far, over 1 million members have joined the platform.
Here’s how it works: Instead of buying a single painting for millions of dollars, you instead invest in fractional shares of blue-chip paintings by renowned artists such as Pablo Picasso, Basquiat and Banksy. Blue-chip paintings are pieces of art that tend to only increase in value over time, much like blue-chip companies.
Sold
Joan Mitchell
17.8% annualized net return
Sold
Yayoi Kusama
17.6% annualized net return
Sold
George Condo
21.5% annualized net return
These are a few examples of sold artworks from Masterworks. For a full list of currently available art, visit Masterworks' Price Database.
From here, all you have to do is select how many shares you want to buy and Masterworks will take care of the rest.
See important Regulation A disclosures at Masterworks.com/cd
Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.
