Regardless of inventory markets hovering round file highs, traders are feeling jittery. You possibly can see it in client confidence collapsing to its lowest degree since 2014, in addition to within the mass flight into valuable metals as a protected haven, with gold up 74% during the last yr and silver up 139%. On the opposite “facet of the coin,” high-risk investments like Bitcoin are crashing, with Bitcoin down 46% from its all-time excessive.
In the meantime, recession and inflation threat each stay increased than typical, because of softening labor markets, commerce wars, and heightened geopolitical threat.
The place Billionaires Are Investing
So what are the wealthiest, best-informed traders on the earth doing with their cash in 2026?
Yearly, UBS conducts a survey of billionaires and asks about their investing plans for the approaching yr. Right here’s how billionaires stated they plan to shift their investments in 2026:
| Asset Class | Improve Publicity | Hold Identical | Lower Publicity |
|---|---|---|---|
| Personal fairness (direct investments) | 49% | 31% | 20% |
| Equities (developed markets) | 43% | 50% | 7% |
| Hedge funds | 43% | 39% | 18% |
| Equities (rising markets) | 42% | 56% | 2% |
| Personal fairness | 37% | 35% | 28% |
| Infrastructure | 35% | 60% | 5% |
| Personal debt | 33% | 45% | 22% |
| Actual property | 33% | 45% | 21% |
| Gold / valuable metals | 32% | 64% | 3% |
| Artwork and antiques | 27% | 65% | 8% |
| Fastened earnings (developed markets) | 26% | 52% | 22% |
| Fastened earnings (rising markets) | 19% | 66% | 15% |
| Money (or money equal) | 19% | 64% | 17% |
| Commodities | 10% | 83% | 8% |
At first look, actual property appears prefer it falls in the midst of the checklist for elevated publicity. However that’s solely direct possession—which is commonly not how billionaires make investments.
I spend money on actual property in many various methods, as do billionaires. Listed below are the numerous methods you possibly can spend money on actual property over the approaching yr and past, most of them passive, like billionaires do.
Personal Fairness Actual Property
Personal fairness contains privately owned companies, after all—nevertheless it additionally contains actual property syndications.
The UBS survey says half (49%) of billionaires plan to extend their publicity to non-public fairness this yr, for the most important funding bounce. Solely one in 5 plans to lower publicity.
“We’re seeing the wealthiest traders shift towards onerous property and income-producing property that hedge in opposition to volatility,” notes Lesley Hurst, president of Penn Constitution Summary, in a dialog with BiggerPockets. “In unsure cycles, wealth tends to consolidate round tangible property with long-term utility.”
I actually spend money on actual property syndications with comparatively small quantities ($5,000) by means of a co-investing membership. I get the money movement, appreciation, and tax advantages of actual property possession with out the fixed wrangling of property managers, contractors, and tenants.
As a result of actually, do you assume billionaires fiddle with that? They make investments passively and let different folks handle property and properties.
Equities: REITs
I nonetheless personal shares in a couple of REITs, though I now not spend money on the house.
Certain, they’re liquid and straightforward to purchase and promote in small quantities. However they don’t do what I want my actual property investments to do: present diversification from the broader inventory market. Learn extra concerning the uncomfortably shut correlation if you happen to don’t imagine me.
Actual Property Funds
You possibly can, after all, additionally spend money on personal fairness actual property funds. On the plus facet, they provide diversification. You get publicity to a number of properties with a single funding.
However they typically include excessive charges, and most solely permit accredited traders to take part. You don’t must be a billionaire—however you do have to be a millionaire.
I’ve invested a couple of instances in passive actual property funds, resembling a land fund that pays 16% in distributions. However in my co-investing membership, we prioritize investments that permit middle-class traders, not simply millionaires.
Secured Personal Debt
As a lot as I like proudly owning a giant piece of actual property pies, debt investments include their very own benefits. That begins with a gentle earnings, typically at a excessive yield. Our co-investing membership has lent notes at 15% curiosity, secured with a first-lien place at a low LTV ratio.
These typically include a shorter timeline, and one which you already know upfront. Typically they’re even versatile: I’ve invested in a rolling six-month observe that I can exit at any time with six months’ discover.
Actual Property: Solo or JV Possession
You possibly can, after all, purchase properties straight and make a facet hustle (or a full-time enterprise) out of it. I used to try this myself.
In the present day, I solely make investments passively. We regularly type three way partnership (JV) partnerships with lively traders, resembling partnering on home flips, land flips, or development initiatives.
We offer the cash as silent companions and get a minimize of the returns. In some instances, we’ve even negotiated a assured ground return.
“The savviest traders aren’t chasing hype in 2026; they’re positioning for resilience,” observes skilled investor Erik Drentlaw of Promote My Dallas Home Quick when speaking to BiggerPockets. “We’ve seen a shift favoring cash-flowing property and strategic personal investments over frothy public markets.”
Investing in 2026: Danger and Technique
I don’t chase developments. However I do discover it reassuring to see the wealthiest, best-informed traders on the earth trying to transfer more cash into the identical kinds of investments that I make each single month.
And I do imply each month. I apply dollar-cost averaging with my actual property investments, placing comparatively small quantities in new investments every month. I now not play the idiot’s sport of making an attempt to time the market. I simply preserve placing one step in entrance of the opposite, no matter whether or not everybody else is panicking or hoovering up investments.
I’ve tried to maintain one eye on recession-resilient investments to assist defend in opposition to draw back threat. Nothing’s foolproof, however some investments do defend higher than others.
As for inflation threat, actual property hedges in opposition to it higher than most investments. Likewise, actual property withstands geopolitical dangers higher than most as nicely.
Some new disaster will come alongside, whether or not in 5 months or 5 years. It’ll really feel scary within the second, and a few investments will possible endure. However I’d somewhat preserve stacking up small, numerous actual property investments over time and letting them type a bell curve of returns, somewhat than making a couple of big, remoted investments.
