Bitcoin, gold, AI from China: Wall Street analysts advise where to invest $10,000

Six Wall Street analysts shared with Business Insider where they would currently invest $10,000. Their list includes gold mining stocks, European and British securities, and AI companies, but not only.

Now Americans hold huge amounts of cash - almost $20 trillion, including $7 trillion in money market funds, writes Business Insider. In recent years, holding caches was profitable: such funds, as well as certificates of deposit and Treasury bonds, brought decent yields, the publication notes. However, now that the U.S. Federal Reserve has returned to lowering rates, yields on low-risk instruments are falling, and investors are beginning to look for other options for investing.

Jared Woodard, head of the Investment Research Committee and ETF strategist at BofA Securities, shared three investment ideas. In his opinion, as the Fed moves to ease policy, the following assets are worth looking at:

1. Undervalued small-cap stocks. "Everyone already has a lot of large-cap securities. Sometimes it pays to 'go against the consensus' - invest in smaller undervalued companies for diversification," Woodard explained. - Smaller players benefit from lower rates because 45% of their debt is short-term, which can be refinanced at a lower rate."

2. Emerging market debt, that is, emerging market corporate or government bonds. They typically offer higher yields than developed-country bonds but carry more risk, Woodard warns. These securities also benefit from lower rates, he estimates.

3. Gold mining stocks should pay good dividends amid rising demand for the metal, says a BofA strategist. "While these companies are historically subject to economic cycles, today they are more disciplined in capital management, generate significant free cash flow and continue to return funds to shareholders through dividends and share repurchases," Woodard explained.

He chose three exchange-traded funds that fit these strategies: the iShares US Small Cap Value Factor ETF (SVAL), the BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF (XEMD) and the VanEck Gold Miners ETF (GDX).

Ben McMillan, chief investment officer at IDX Advisors, recommends using the so-called "deflationary strategy": invest half of your money in gold and the other half in bitcoin. Both assets have risen in 2025 on the back of a weakening dollar, the fall of other fiat currencies and the growth of global sovereign debt. "Yes, they have fallen a little bit in price in recent days, but the potential for growth remains," the analyst clarifies. - [Bitcoin and gold] are two sides of the same coin, the beginning of the end of dollar dominance."

McMillan named two funds to invest in these assets: the SPDR Gold Trust (GLD) and the iShares Bitcoin Trust ETF (IBIT).

David Kelly, chief global market strategist at JPMorgan Asset Management, believes that it is now profitable to invest in European and British stocks - they are cheaper than American stocks and offer higher dividends. "Their P/E multiplier (the ratio of share price to estimated earnings - Oninvest) averages about 15, while that of American securities is about 20," he said. - If the dollar continues to fall, the profitability of such investments for American investors will increase".

Examples of funds to invest in these stocks, according to Kelly: iShares MSCI United Kingdom ETF (EWU) and Vanguard FTSE Europe ETF (VGK)

Jason Hsu, founder of Rayliant Global Advisors, sees potential in AI-related stocks. He suggested allocating $10,000 as follows: $6,000 to invest in Chinese AI companies (Alibaba - $4,000, Xiaomi - $2,000) and $4,000 in U.S. companies (Supermicro - $2,000, Microsoft - $2,000).

David Lefkowitz, head of U.S. equities at UBS Global Wealth Management, also believes that betting on AI is still relevant. He recommends investing in the technology and communications sectors, as well as in utility companies that support AI development, and for diversification, in the healthcare sector.

Examples of funds to invest in under these proposals are cited by Business Insider: the Vanguard Information Technology Index Fund ETF (VGT), Communication Services Select Sector SPDR ETF Fund (XLC), Vanguard Utilities ETF (VPU) and iShares U.S. Healthcare ETF (IYH).

Tony Despirito, chief investment officer of fundamental equities at BlackRock, looks for "cheap" companies with earnings growth potential. He identified several undervalued market segments:

1. health maintenance organizations (HMOs), i.e. companies offering insurance plans. Their profitability should increase with the tightening of underwriting, the analyst believes. An example of such asset is a large American insurer Elevance Health. The P/E multiple with which its shares are traded is 11.5, Despirito notes.

2. Companies related to moving and home improvement may show growth on the back of falling interest rates: when loans become more affordable, people are more likely to change homes and make renovations. Plumbing and construction firms, for example, benefit from equipment replacement. Despirito cited Fortune Brands as one of the undervalued companies in this segment.

3. "Headquarter discount" stocks are securities of companies that are priced cheaper simply because they are headquartered outside the U.S., the analyst explained. "For example, BP and Shell trade at a notable P/E discount compared to Exxon, even though they have similar businesses," Despirito noted. - British American Tobacco trades at the same price as [another tobacco maker] Altria, but has more next-generation products (vapes, nicotine sprays) with 15% year-over-year growth, and an Indian subsidiary trading at a higher multiple."

This article was AI-translated and verified by a human editor