Goldman Sachs: Ultra-wealthy investors shifting to alternative assets

Research from Goldman Sachs indicates a significant shift in investment strategies among high-net-worth individuals, who are increasingly moving away from traditional stock and bond portfolios toward alternative assets.

According to the data, 80% of investors with investable assets exceeding $10 million have turned to alternative investments. Among those with assets between $1 million and $5 million, the rate is 39%. This trend comes as the traditional 60/40 portfolio—comprising 60% stocks and 40% bonds—faces scrutiny due to bonds failing to provide the expected protection during periods of market volatility.

Key alternative assets attracting interest include gold and real estate. Real estate remains popular for its potential for long-term value appreciation and rental income, while gold is favored for its ability to move independently of stock and bond prices. Additionally, a 2025 CAIS Mercer study found that approximately 49% of financial advisors allocate more than 10% of their clients' portfolios to alternative assets.

This shift occurs despite the S&P 500 reaching near-record levels. Morningstar data noted that in August, approximately 60% of stocks within the S&P 500 were trading at least 20% below their historical peaks, highlighting a divergence between the index's overall performance and the performance of individual constituent stocks.