High-net-worth investors are pulling out of the stock market. Here’s where they’re funneli
December 20, 2025
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The U.S. stock market has been performing well this year, despite tariff uncertainty, but recently hit a sluggish patch — one predicted by high-net-worth investors, who are increasingly betting on other investment types.
Michael Sonnenfeldt, founder of Tiger 21, an exclusive network of ultra-high-net-worth investors, says the ultra-rich aren’t chasing the stock market hype.
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“Actually, they just pulled back a couple points in the last quarter from the stock market and from real estate,” Sonnenfeldt told CNBC in September, noting that the average Tiger 21 member controls more than $100 million (1).
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, as Wall Street remains jittery. CNN Business reports that the strong year has given investors “outsized expectations” about stock performance. Coupled with the possibility of an AI bubble and December’s Federal Reserve interest rate cut, investors are on edge (2).
For the Tiger 21 group and other investors like them, 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 itcoin — reflects a search for alternative stores of value.
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. It isn’t tied to any single country, currency or economy, and it can’t be printed like fiat money. Investors often flock to it during periods of economic stress or geopolitical uncertainty — pushing prices higher.
Gold is up over 60% so far this year, and hit highs of about $4,350 in mid-October (3). After a slight dip in November, the spot price of gold recovered in December. This performance could be indicative of the trust many investors have put in the commodity, as opposed to the stock market.
If you want to tap into the inflation-resistant asset, you can also bet on gold, and in a way that provides significant tax advantages, by opening a gold IRA with the help of Thor Metals.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.
To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases. Just keep in mind that gold is often best used as one part of a well-diversified portfolio.
Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
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.”
Bitcoin has taken investors on a rollercoaster ride recently, with the performance falling from an all-time high of around $126,200 in early October to wavering around $85,500 (4). However, many investors are still bullish on this alternative asset and expect its value to rebound. Besides, buying during the dip is a classic investment strategy.
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. Its volatility comes in part from not being backed by central banks, or fiat currency — although that too may be changing with the advent of so-called “stablecoin.”
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 2.6% more crypto compared to trading on other platforms.
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 Buffett 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 (5).” 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.
A 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.
With platforms like Robinhood, you can invest in ETFs like the Vanguard S&P 500 to get a start on your nest egg.
Robinhood has 24/7 support, and you won’t pay any commission fees on stocks, ETFs and options.
Their platform also offers both a traditional IRA and a Roth IRA, so you can benefit from tax-efficient retirement investing.Even better, new Robinhood customers can also get a free stock curated from top American companies once you sign up and link your bank account to the app.
Finally, Sonnenfeldt noted a small pullback in real estate allocations. But the asset class remains a time-tested way to preserve wealth — particularly in inflationary periods.
As inflation pushes up the cost of materials, labor and land, property values often climb in tandem. Rental income tends to follow as well, providing landlords with cash flow that adjusts with inflation.
In fact, Buffett has long highlighted real estate as a prime example of a productive, income-generating asset. In 2022, Buffett remarked that if you offered him “1% of all the apartment houses in the country” for $25 billion, he would “write you a check (6)”.
Why? Because no matter what’s happening in the economy, people still need a place to live, and apartments can consistently produce rent money.
Of course, you don’t need billions — or even to buy a single house — to benefit from real estate investing. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.
Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.
The process is simple: Browse a curated selection of homes pre-vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you want to purchase and then sit back as you start receiving any positive rental income distributions from your investment.
But Arrived isn’t the only way to invest in real estate. If you want to tap into this asset class, but with single-family rentals instead, you have more options available.
Mogul is a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment.
Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.
Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10% to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.
Every investment is secured by real assets, not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.
Getting started is quick and easy. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.
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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
@CNBCtelevision (1); CNN Business (2); Forbes (3); Business Insider (4); CNBC (5), (6)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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