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.
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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.
