Here’s where to invest $1 million, according to the pros – CNBC
Investors weighing where to deploy $1 million today face a mix of shifting central bank policy and geopolitical risks. However, strategists say the path forward is clearer than it looks: stay invested, stay diversified, and focus on structural themes such as industrial spending and high-quality bonds. If you had $1 million to invest right now, where should you put your money to work? CNBC Pro asked veteran investors how they would allocate that sum. They offered tips for investors with different risk profiles. Moderate-risk investors can lean on multi-asset portfolios For balanced investors, Citi Wealth recommends keeping portfolios fully deployed, citing a durable earnings backdrop and an AI-driven capital-expenditure cycle. “For a client with a moderate risk profile seeking a balance between risk and return, we would recommend a diversified, multi-asset portfolio anchored,” said Lui Chee Ming, head of investment advisory for Asia South. For a $1 million portfolio, he would allocate around 60% to equities, 37% to fixed income, 2% to commodities such as gold as a hedge, and 1% to cash. .SPX YTD mountain Performance of the S & P 500 index since the start of the year Citi’s equity mix leans toward U.S. large-caps. The 60% allocation includes 38% U.S. large-cap, 13% non-U.S. developed markets, and 9% emerging markets, with small overweights in Europe and China as flows broaden beyond the U.S. Lui also pointed to artificial intelligence as “the most significant structural growth trend of our time,” despite concerns of frothy valuations. He expects the “AI productivity revolution” and a monetary policy pivot to support returns, while noting risks of elevated prices. Chris Fasciano, chief market strategist at Commonwealth Financial Network, uses a 60-40 framework and sees room to tilt toward U.S. equities, particularly large-cap growth, while stressing diversification. “After several years of significant outperformance… now is the time to position portfolios for more breadth.” International equities may finally be getting momentum. “Cheap with a catalyst gets much more interesting,” citing Europe’s rearmament cycle and infrastructure spending. For aggressive investors: more equities, more AI Citi’s Lui said investors with a higher risk tolerance can hold “higher equity and thematic weighting… with a greater emphasis on our highest-conviction growth themes like AI and technology,” and may consider structured products or private markets to enhance returns. David G. Dietze, chief investment strategist at Dietze Wealth Management, said those with very high risk tolerance “could easily justify greater exposure to equities, indeed up to 100%.” AlTi Global, which works predominantly with ultra-high-net-worth clients, also emphasized alternatives for more aggressive investors. Chief investment officer Nancy Curtin outlined a flexible framework of 40% equities, 30% bonds, 20% private credit and 10% cash, noting that wealthy clients often carry larger alternative sleeves. Curtin expects generative AI to drive a long innovation cycle, arguing that innovation-led bull markets tend to last longer than average and sustain higher valuations. She also sees a “U.S. reindustrialization and Capex boom” and encourages investors to broaden AI exposure beyond mega-caps into industrials, healthcare, logistics and emerging markets. Private credit remains a core allocation that offers an attractive premium over public credit, Curtin said, though she stressed the need for careful manager selection given rising restructuring risk. Curtin also sees a continued role for real-asset hedges: “Hold ~5% in cash for liquidity. Add 5% gold and ~1% bitcoin (for younger clients) as hedges against debt monetization and inflation.” More conservative? Consider bonds, dividends and stability Across wealth managers, conservative portfolios tilt more heavily into income and quality. Citi says conservative clients should hold a higher share of fixed income, along with more dividend-oriented equities with strong balance sheets and stable earnings. Dietze echoed that view but warned that cautious investors should stick to “high quality fixed income as opposed to high yield (junk) bonds,” with maturities under five years to reduce rate sensitivity. For taxable U.S. investors, he prefers tax-exempt municipal bonds. Cash, he added, provides “immediate liquidity and the best offset to volatility.” His preferred allocation is 70% equities, 25% fixed income, 5% cash. On sectors, Dietze flagged value-driven opportunities in the energy sector, where he said producers trade at rather low valuations as investors focus on nuclear and electricity while fossil fuel prices slide. However, he believes that lower interest rates will lift economic activity and energy usage. He cited recession risks and tariff volatility but said investors should avoid overreacting to policy shifts and stay invested: “Stocks may well go up during a recession as they see better conditions down the road based on stimulative government policies.”
