Connect with us

Business

How will the ultrawealthy ride out the recession? 1,200 investors worth $130 billion have one big strategy—and it’s not playing the stock market

News Agencies

Published

on

The 1,200 ultra-high-net-worth members of the Tiger 21 network, comprising entrepreneurs, investors, and executives, are “wealth preservers,” in the words of Michael Sonnenfeldt, the organization’s chairman. Worth a collective $130 billion, this ultrarich group knows better than most how to hang onto their immense assets.

So how is this group of investors building recession-proof portfolios heading into the new year? The answer, it turns out, is actually not to invest right now, as Tiger 21 members recently told Sonnenfeldt and the organization’s management that “Cash is King,” according to a Tiger 21 survey made available to Fortune. Having enough liquidity on hand would help them “pounce on real estate opportunities in the next nine to 12 months.”

Almost 70% of members surveyed said that they planned to invest in real estate in 2023, with multi-family units, medical facilities and storage units seen as strong holdings. Office and retail premises, meanwhile, were being avoided.

In comparison, a recent poll of retail investors found that just a third of amateur traders planned to invest in real estate in 2023, instead favoring equities—specifically big tech and green energy stocks.

Advertisement

Other sectors the uberwealthy members of Tiger 21 were planning to invest in over the course of the new year included technology, energy and healthcare.

View this interactive chart on Fortune.com

When it came to stocks, the consensus among Tiger 21’s membership was that the bottom was yet to be hit, even after investors contended with a consistently, and often dramatically, faltering market throughout 2022. Many said they were holding onto inexpensive index funds as part of their long-term strategy.

Advertisement

According to Sonnenfeldt, Tiger 21 members were also investing in smaller, private companies “where they can leverage their own entrepreneurial skills,” and felt more comfortable working with private equity firms that were cash-positive or profitable.

Crypto ‘at the scale of gold’

Despite a tumultuous year for cryptocurrencies in 2022, many of Tiger 21’s wealthy members had decided not to jump ship and sell off their digital tokens.

Advertisement

One in three said they had kept their crypto holdings the same over the last six months, while 10% had bought more. Half of the club’s members said they held no cryptocurrency.

Meanwhile, one in five said they planned to increase their crypto holdings in the first half of the year, with a quarter intending to maintain their cryptocurrency assets at the same level in the coming six months. Just 4% planned to sell cryptocurrency.

“If you take it across our entire Tiger 21 Membership, crypto is roughly at the scale of gold,” Sonnenfeldt—who described the unregulated digital tokens as “an instability hedge” for many members—said in a note alongside the survey results at the end of December.

Advertisement

“Those who have a fundamental belief in crypto will see this as a buying opportunity, but they are smart enough to not put more than a certain percentage toward this in order to preserve wealth over the long term,” he said.

Gold is widely regarded as a safe haven asset, with investors pouring money into it during periods of economic or political instability.

Crypto, on the other hand, is notoriously volatile. Last year’s cryptocurrency revaluation, widely referred to as the Crypto Winter, wiped trillions off of the market this year, and sparked a major pullback from the venture capital investors who were pouring money into startups in the sector last year.

Advertisement

However, Tiger 21’s Sonnenfeldt argued: “If you’re concerned about the economic and monetary systems in your country, then it makes sense to invest in assets like crypto and gold—specifically for investors outside of the United States.”

This story was originally featured on Fortune.com

More from Fortune:
People who skipped their COVID vaccine are at higher risk of traffic incidents
Elon Musk says getting booed by Dave Chapelle fans ‘was a first for me in real life’ suggesting he’s aware of building backlash
Gen Z and young millennials have found a new way to afford luxury handbags and watches—living with mom and dad
Meghan Markle’s real sin that the British public can’t forgive–and Americans can’t understand

Advertisement
Continue Reading
Advertisement

Advertisement

Breaking News

Editor Pick’s

Latest Entertainment

Entertainment2 hours ago

‘American Idol’ singer Curtis ‘C.J.’ Harris died of a heart attack

Former “American Idol” contestant Curtis “C.J.” Harris’ Jan. 15 death was caused by a heart attack, a spokesperson for the...

Entertainment4 hours ago

‘Boy Meets World’ star Ben Savage files to run for Congress, potentially filling Rep. Adam Schiff’s seat

Actor Ben Savage appears to be considering a run for Congress, filing with the Federal Election Commission to potentially replace...

Entertainment4 hours ago

How Nick Viall Roped Tom Hanks into His Proposal to Fiancée Natalie Joy: ‘He Got a Kick Out of It’

Nick Viall went to great lengths to create a surprise proposal for his now-fiancée Natalie Joy. On Thursday’s episode of...

Entertainment4 hours ago

Folk-rock pioneer David Crosby dies at age 81 after long illness

Rock & Roll Hall of Fame member David Crosby, founding member of the Byrds and Crosby Stills & Nash, performs...

Entertainment4 hours ago

Leslie Jordan’s cause of death revealed, 3 months after he died

Leslie Jordan helps announce the Oscar nominees in 2021. (Photo: Getty Images) Actor Leslie Jordan‘s official cause of death has...

Entertainment5 hours ago

Search for Julian Sands Continues as Rescuers Try to Track His Movements Using His Cellphone

Julian Sands Still Missing Nearly 1 Week After He Went Hiking on Deadly Mt. Baldy charley gallay/wireimage The search continues...

Entertainment6 hours ago

Will Alec Baldwin face jail time for involuntary manslaughter? Here’s what’s next in ‘Rust’ case

Alec Baldwin will be charged with involuntary manslaughter for Halyna Hutchins’s death. Here’s what that means. (Photo: WireImage) New Mexico...

Entertainment6 hours ago

Miley Cyrus’ breakup anthem ‘Flowers’ praised by Gloria Gaynor: ‘Carries the torch of empowerment’

Miley Cyrus is earning her “Flowers” from another music icon: Gloria Gaynor. The 79-year-old disco singer, whose breakup anthem “I Will Survive” from...

Advertisement

Latest Sports

Sports55 mins ago

Bucs fire assistant DL coach Lori Locust

The coaching staff changes in Tampa are not limited to the offensive side of the ball. Ian Rapoport of NFL...

Sports1 hour ago

Deion Sanders continues loading up on talent at Colorado, adding 5-star cornerback Cormani McClain

For the second consecutive recruiting cycle, Deion Sanders has landed a commitment from the No. 1 cornerback in the country.

Sports2 hours ago

Greg Roman won’t return as Ravens OC

Baltimore's offense will look different in 2023, regardless of whether Lamar Jackson is back.

Sports2 hours ago

Deion Sanders continues load up on talent at Colorado, adding 5-star cornerback Cormani McClain

For the second consecutive recruiting cycle, Deion Sanders has landed a commitment from the No. 1 cornerback in the country.

Sports3 hours ago

California wants to change college sports — again

A proposed bill in California would expand how athletes get paid. If it plays out anything like the start of...

Sports3 hours ago

Yes, the Eagles are that good; 49ers face one heck of a QB question; and Mike Tomlin loves playing on All-Madden

In the divisional round edition of Four Verts, Charles McDonald asks if the Giants have a chance, if the 49ers...

Sports4 hours ago

Vikings fire defensive coordinator Ed Donatell after 1 season, playoff loss

The Vikings were knocked out of the playoffs last weekend by the New York Giants.

Sports4 hours ago

49ers injury report: Jimmy Garoppolo, Trey Lance making strides in recoveries

The 49ers' latest injury report includes big updates from Trey Lance and Jimmy Garoppolo.

Technology Hot News

Technology23 hours ago

Led by "Amazon" and "Microsoft" .. the technology giants are planning to lay off 64,000 employees

After 10 years of driving the stock market bull run, big tech companies are racing to downsize staff to adapt...

Technology1 day ago

Apple introduces MacBooks with new M2 processors

Yesterday, Tuesday, Apple unveiled MacBooks powered by the new, faster “M2 Pro” and “M2 Max” processor chips, in a surprise...

Technology2 days ago

All you need to know about the upcoming Galaxy S23 phones from Samsung

Samsung has officially announced that the (Galaxy Unpacked 2023) event will be held this year on Wednesday, February 1, which...

Technology2 days ago

FTX Exchange Announces Hacking and Stolen $415 Million in Cryptocurrency

Bankrupt American cryptocurrency firm FTX announced today, Wednesday, that $415 million in cryptocurrency has been hacked and stolen from the...

Technology2 days ago

Because of a "fraudulent tweet"… Elon Musk's trial begins

Elon Musk's trial began Tuesday in San Francisco with the selection of jury members who will have to decide whether...

Technology2 days ago

An electric spoon replaces salt and spices, but with conditions

Experts have developed an electric spoon that is able to replace spices and flavors and affect the taste buds in...

Technology5 days ago

The biggest dangers of using tracking devices.. so you can escape?

If you spot an unknown Bluetooth tagging device, there are ways to disable the device so it can't track your...

Technology5 days ago

New Twitter.. For You tab to web version

The Twitter platform announced that it will bring the new tab (For You), which launched last Tuesday for iPhones and...

Advertisement