Thursday, September 6, 2012

The Ultra-Rich Are Ready to Go Back to Stocks





From cnbc: It won’t come as news that the wealthy are pessimistic about the economy, the government and taxes.  But here’s a surprising bright spot: the majority of the ultra-wealthy plan to buy more stocks in the next 12 months. In fact, stocks beat out all other asset classes when it comes to where the rich plan to put their money in 2012.

So why are the rich buying stocks even if they’re pessimistic about the economy?  George Walper, president of Spectrem, says researchers didn't ask the rich how much money they plan to put into stocks – just whether they planned to buy.

"This group is always investing in equities, so this just continues that trend," he said.

But their appetite for stocks is also being driven by returns.   Bonds and money-markets are dead meat right now. As a group, the super-rich are highly aggressive when it comes to return on their money. The survey found that more than 62 percent want annual returns or 9 percent or more. Fully 64 percent said they expected to do better than the stock market.  And nearly three quarters said taking risk was important to creating their wealth.  That need for yield is driving many into stocks, as well as hedge funds and other alternatives…

Don't stop reading now.  Go to http://www.cnbc.com/id/48914750

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