During market turmoil, wealthy investors are taking a cautious approach, focusing on tax-loss harvesting and estate planning amidst lower stock prices. Unlike previous crashes in 2020 and 2008, high-net-worth individuals feel less pressure to sell, opting instead to accumulate cash and wait for more clarity on policy and markets.
Experts say many clients have been using the opportunity to rebalance their portfolios, with some even starting to buy individual stocks or indexes that were previously undervalued. Wealthy investors are also seeking safe-haven assets like gold, which has seen its value decrease but remains a popular hedge against market volatility.
“We’re getting a lot of questions about gold,” said John Mathews, head of private wealth management for the Americas at UBS. “Everybody is interested in having a piece of gold as a hedge right now.”
To navigate the uncertainty, many wealthy clients are turning to estate and tax planning strategies. For example, grantor retained annuity trusts (GRATs) have become more attractive due to lower asset prices, allowing investors to transfer wealth to family members with tax savings.
Matthew Fleissig, CEO of Pathstone, noted that fear levels among his clients have decreased significantly compared to previous market downturns. Family office clients are now “layering in” to the market and buying, while also seeking structured products that offer protection on the downside.
“We’re getting less fear from our clients right now and more, ‘Should we be buying?'” said Fleissig. “In times like these, it’s our ability to find asymmetric opportunities, like opportunities in private markets or structured products that investors look to us for.”
Overall, wealthy investors are taking a wait-and-see approach, opting to accumulate cash and wait for more clarity on policy and market trends before making any significant changes to their portfolios.
Source: https://www.cnbc.com/2025/04/10/wealthy-load-up-on-cash-gold-family-trusts-during-market-turmoil-.html