Billionaires are shifting their investment strategies towards real estate and gold due to market uncertainty.
The survey of 2,682 billionaires reveals that their collective wealth has increased by 121% between 2015 and 2024, reaching $14 trillion. In contrast, the MSCI AC World Index only gained 73% during the same period. This disparity highlights the investment acumen of billionaires, who are now focusing on specific asset classes where they have a competitive edge.
Real estate is the preferred asset class, with 19% of billionaires planning to increase their exposure. This interest is seen across various regions, with a focus on the Americas, Asia-Pacific, and Europe, the Middle East, and Africa. The stability and long-term appreciation potential of real estate make it appealing to billionaires in an uncertain economic landscape.
Gold and other precious metals are also gaining traction as a hedge against instability, with 7% of billionaires planning to increase their exposure.
Developed market bonds and equities are approached cautiously, with some billionaires planning to increase their exposure while others are looking to decrease their investments.
Private equity is a mixed bag, with some billionaires planning to increase their exposure while others are looking to decrease their investments.
Overall, billionaires are adapting their investment strategies to navigate the changing market landscape and remain at the forefront of wealth accumulation and preservation.