Here's why super-rich Americans are giving up on the stock market and holding more cash and alternative assets
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High net worth individuals — typically those with $1 million or more in investable assets — held large portions of their total portfolio in cash in 2024. According to a survey conducted by Capital Group, 78% of global high-net-worth individuals around the world held relatively high cash positions.
Higher market volatility and fears regarding persistently high inflation levels are a few major reasons contributing to the shift away from equities and bonds.
Ultra high net worth individuals seem to agree. Warren Buffett, the fifth richest person in the world, held $334 million in cash at the end of 2024. This has propelled Buffett’s wealth even in the tumultuous economy — rising by over $23 billion so far this year, as of May 2.
In comparison, Elon Musk, the world’s richest man, lost over $101 billion in net worth since the start of 2025.
As U.S. equities grapple with uncertainties amid the tariff fiasco, cash and cash equivalents might deliver better-than-anticipated returns.
As the Federal Reserve holds rates steady, investing in relatively safer options like U.S. government bonds or certificates of deposit (CDs) might help you hold onto your wealth in stormy weather.
With MyBankTracker, you can shop and compare top certificates of deposit rates from various banks nationwide.
Their extensive database highlights the most competitive rates, is updated daily and offers personalized recommendations based on your risk tolerance and time horizon — helping you find the right CD to match your savings goals.
The Capgemini World Wealth Report found that high net worth individuals increased their portfolio allocations to alternative assets from 13% in 2023 to 15% in 2024.
For those who don’t want to deal with stock market volatility, there are accessible ways to invest in alternative assets and shield yourself from a potential crash.
Fine art tends to maintain its value during turbulent markets. According to a 2024 survey conducted by UBS, 85% of high-net-worth investors are still maintaining their confidence in art. Some even allocate as much as 25% of their total portfolio to art collections.
Historically, art has not been the most accessible asset to invest in. Not everyone has the time — or cash — to secure a beloved piece of contemporary art.
But with Masterworks everyday investors can dip their toes into the world of fine art without dropping millions.
Masterworks handles every step, from authentication and acquisition to storage and sale, with no art expertise or billionaire’s checkbook needed. When Masterworks sells a painting — like the 23 it’s already sold — investors reap their portion of any profits.
For instance, in the last few years investors realized representative annualized net returns like +17.6%, +17.8%, and +21.5% among assets held for more than one year.
It’s easy to get started at Masterworks, and you can even skip the waitlist.
Read more: Here are 5 simple ways to grow rich with real estate — whether you have $10 or $100,000 to invest
Another alternative option that can provide returns amidst economic turmoil is real estate.
Rental properties have long been a proven source of steady, passive income for investors. But managing properties cost time, effort and serious cash.
You can tap into this market by investing in shares of vacation homes or rental properties through Arrived.
Backed by world-class investors including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.
To get started, simply browse through their selection of vetted properties, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100, potentially earning quarterly dividends.
But residential real estate isn’t the only option if you’re keen to invest in real estate.
Accredited investors can invest in commercial real estate easily through First National Realty Partners (FNRP).
Through FNRP you have access to institutional-quality, grocery-anchored commercial real estate investments without the legwork of finding or managing deals on your own.
Since the investments are necessity-based they tend to act as a hedge against inflation.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.