Even as stock markets hover around record highs, investors are feeling jittery. You can see it in it consumer confidence collapsing to the lowest level since 2014, as well as in the mass flight to precious metals like safe haven, with gold up 74% and silver up 139% over the past year. On the other side of the coin, risky investments like Bitcoin are collapsing, with Bitcoin down 46% from its all-time high.
Meanwhile, recession and inflation risk both remain higher than normal, due to weakening labor markets, trade wars and increased geopolitical risks.
Where billionaires invest
So what will the world’s richest, best-informed investors do with their money in 2026?
Every year, UBS conducts an investigation into billionaires and asks about their investment plans for the coming year. Here’s how billionaires said they plan to shift their investments in 2026:
| Asset class | Increase exposure | Stay the same | Reduce exposure |
|---|---|---|---|
| Private equity (direct investments) | 49% | 31% | 20% |
| Equities (developed markets) | 43% | 50% | 7% |
| Hedge funds | 43% | 39% | 18% |
| Equities (emerging markets) | 42% | 56% | 2% |
| Private assets | 37% | 35% | 28% |
| Infrastructure | 35% | 60% | 5% |
| Private debts | 33% | 45% | 22% |
| Property | 33% | 45% | 21% |
| Gold/precious metals | 32% | 64% | 3% |
| Art and antiques | 27% | 65% | 8% |
| Fixed income (developed markets) | 26% | 52% | 22% |
| Fixed income securities (emerging markets) | 19% | 66% | 15% |
| Cash (or cash equivalent) | 19% | 64% | 17% |
| Raw materials | 10% | 83% | 8% |
Real estate at first glance it looks like it’s falling in the middle of the list for more visibility. But that’s just direct ownership – and that’s often not the way billionaires invest.
I invest in real estate in many different ways, just like billionaires. Here are the many ways you can invest in real estate in the coming year and beyond, most of which are passive, like billionaires do.
Private equity real estate
Private equity obviously includes private companies, but also real estate syndicates.
According to UBS survey, half (49%) of billionaires plan to increase their exposure to private equity this year, for the biggest investment jump. Only one in five plans to reduce exposure.
“We’re seeing the wealthiest investors shifting toward hard assets and income-producing assets that hedge against volatility,” said Lesley Hurst, president of Penn Charter Summaryin a conversation with BiggerPockets. “In uncertain cycles, wealth tends to consolidate around tangible assets with long-term utility.”
I personally invest in real estate syndications with relatively small amounts ($5,000) through a co-investment club. I get the cash flow, valuationand tax benefits of real estate ownership without the constant bickering of property managers, contractors and tenants.
Because do you really think billionaires mess with that? They invest passively and rent other people asset and property management.
Stocks: REITs
I still have shares in some of them REITsalthough I don’t invest in the space anymore.
Certainly, they are liquid and easy to buy and sell in small quantities. But they don’t do what I need my investment properties to do: provide diversification of the broader stock market. Read more about the uncomfortably close correlation if you don’t believe me.
Real estate funds
Of course you can also invest in private equity real estate funds. On the plus side, they offer diversification. With a single investment, you get exposure to multiple properties.
But they often come at a high cost, and most do only allow accredited investors to participate. You don’t have to be a billionaire, but you do have to be a millionaire.
I’ve invested a few times in passive real estate funds, such as a land fund that pays 16% in distributions. But in my co-investment club, we prioritize investments that enable middle-class investors, not just millionaires.
Secured private debt
As much as I love owning a big piece of real estate pie, debt investments have their own benefits. That starts with a fixed income, often with a high return. Our fellow investors club has lent banknotes at an interest rate of 15%, guaranteed of a first lien position bee a low LTV ratio.
These often come with a shorter one timeline, and one that you know in advance. Sometimes they are even flexible: I have invested in a six-month revolving loan that I can terminate at any time with six months’ notice.
Real Estate: Solo or JV ownership
Of course, you can buy properties straight away and turn it into a side job (or a full-time business). I used to do that myself.
Nowadays I only invest passively. We shape often joint venture (JV) partnerships with active investors, such as partnerships in housing, agricultural or construction projects.
We provide the money as silent partners and receive a share of the proceeds. In some cases we have even negotiated a guaranteed floor yield.
“The smartest investors in 2026 are not chasing the hype; they are positioning themselves for resilience,” says professional investor Erik Drentlaw of Sell my house in Dallas fast when you talk to BiggerPockets. “We have seen a shift that favors cash-flowing assets and strategic private investments over frothy public markets.”
Investing in 2026: risk and strategy
I don’t follow trends. But I do find it reassuring to see that the richest, best-informed investors in the world are willing to put more money into the same types of investments I make every month.
And I really mean every month. I practice dollar-cost averaging with my real estate investmentswhere relatively small amounts are invested in new investments every month. I no longer play the silly game of trying to time the market. I just now keep putting one step in front of the other, regardless of whether everyone else panics or sucks up investments.
I have tried to keep one eye on recession-proof investments to help protect against downside risk. Nothing is foolproof, but some investments are better protection than others.
As far as inflation risk is concerned, real estate hedges against it better than most investments. Likewise, real estate is more resilient to geopolitical risks than most other real estate assets also.
There will be a new crisis, whether it is in five months or five years. It will feel scary right now, and some investments will likely suffer. But I’d rather continue to accumulate small, diverse real estate investments over time and let them form a bell curve of returns than make a few huge, isolated investments.
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