How The Ultra-Wealthy Are Investing Going Into 2022
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Unsurprisingly, as we begin the New Year, the topic on many people’s minds that spent the second half of 2021 was the last. soaring inflation.
The following are the ultra-wealthyInflation is a major factor in people’s decisions about how to invest in the New Year.
Michael Sonnenfeldt (chairman and founder) of Ultra-Wealth Investors believes that investors must be concerned about inflation. They want to protect assets by 2022. TIGER 21A peer-to–peer learning network that connects entrepreneurs and investors who have personal net worth between $10 million-$1 billion.
However, everyday investorAlthough they don’t have millions, the rich may still be able to duplicate how wealthy individuals allocate their funds, especially in these inflation worries that are affecting us all. These are the investments made by the extremely wealthy members of TIGER 21 going into 2022.
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1) Building inflation-resistant portfolios
According to TIGER 21, members believe that inflationary pressures are going to be persistent and not temporary. According to TIGER 21, 65% of its members believe that inflation will accelerate over the coming year.
So they are allocating their money to the best investments. protect against inflationSuch as:
- Property, such as industrial properties or apartment buildings, is real estate
- Public equities are stock that is held in platforms companies with price power. Platform companies can be found at Amazon, Apple or Airbnb.
- More information on cryptocurrencies can be found in No. 2 below)
Real estate is not just an asset for the wealthy. It can be used as an investment that hedges against inflation. Real estate can also be invested outside of home ownership. REITsAlso known as Real Estate Investment Trusts. REITs invest in various income-producing properties such as condominiums and housing developments. If you want to be exposed to REIT real estate investment, then it is possible to buy shares.
Investments in publicly traded REITs can be made through any brokerage account. Fidelity, TD Ameritrade RobinhoodCompanies like , Yieldstreet and Elevate Money allow you to buy shares in non-publicly traded REITs on your own through their platforms.
2) Doubling their crypto investments
As an alternative to investing in gold to combat inflation, TIGER members have doubled their investment in cryptocurrencies.
TIGER 21 members are putting their money specifically in ethereum (34%), bitcoin (33%), a crypto fund (23%), other coins (15%) dogecoin (2%).
This wealthy investor is certainly right. Bitcoin has been called “digital gold”, and it theoretically can protect against inflation due to its limited supply. However, it is not known whether it will prove long-term effective as an inflation hedge.
Investors from all walks of life can invest. invest in cryptoThanks to financial apps, it’s easy. Cash AppSquare Inc. owns a peer to-peer service called ‘PayPeer. It allows you to only buy bitcoin. PayPal allows users to purchase four different cryptocurrencies: bitcoin, ethereum, bitcoin cash and litecoin. PayPal holders can also use the crypto they have on their accounts to shop on the app.
RobinhoodIt is the mobile app for stock investingIt supports seven different cryptocurrencies, which can all be bought by customers, such as the Dogecoin cryptocurrency meme. Personal finance provider SoFiWith its mobile app, you can purchase crypto tokens and 21 coins with a variety of currencies. You can have more control and ownership of your cryptocurrency. CoinbaseThis platform allows you to trade, exchange, store, send, and buy over 50 different types of cryptocurrency.
3) Increased investments in alternative energy
Stocks of electric vehicles are still hot investments. The ultra-wealthy continue to invest more in companies such as Rivian, Tesla and Lucid.
Tesla stock can be expensive, but it is possible to still gain exposure to the EV markets by investing in them. ETFs that invest in a variety of companies tied to EVs, such as Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) or iShares Self-Driving EV and Tech ETF (NYSEMKT:IDRV). This investment approach is more broad and lower risk than purchasing individual stocks.
End result
It is interesting to observe how ultra-wealthy investors are investing in the new year, with inflation rising. This is an issue that every investor should be aware of. It’s a good idea to make notes about what investors are doing in order to protect against rising inflation.
It’s not necessary to invest millions in order to safeguard your investment in the stock market.
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Editorial note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
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