November 16, 2010

Millionaires Have Remained in the Market: U.S. Bank Survey

In managing their investments, wealthy households take long-term view

Most U.S. millionaire investors have stayed in the market despite the recession, a fragile recovery and continued market volatility, according to a survey released Monday by U.S. Bank.

The survey, Millionaire Investor Insights Annual Survey, was commissioned by the Private Client Reserve of U.S. Bank and conducted online by Harris Interactive between Sept. 27 and Oct. 15 among some 1,600 U.S. households with investable assets of $1 million or more.

In a statement, U.S. Bank highlighted some key findings:

  • 92% of millionaires have not abandoned the stock market, with 43% currently engaged in moderate to heavy buying or selling and 49% waiting for the right opportunity to buy or sell (only 8% have exited the market altogether);
  • 20% of millionaires who lost value in their investments since 2008 have already seen their investments return to pre-2008 levels, and 90% said their investments had performed better or about the same as other investors since the beginning of 2008;
  • 47% said their investment risk tolerance had not changed during the last three years, and only one in 10 said they were not willing to take any investment losses in the current investment market;
  • 47% of millionaires in past three years made no change in their allocation to equities, 42% made no change in their allocation to fixed income, and 47% made no change in their allocation to cash; and
  • 72% said the U.S. stock market’s performance had a major or moderate impact on their investment strategies.
  • 80% said they were personally involved in making decisions about their investment portfolios, with 20% delegating most or all of their investment decisions to their financial advisor.
  • 70% of millionaires trust their financial advisor to help them grow their investments.

Harris Interactive is a custom market research firm that offers expertise in a wide range of industries including healthcare, technology, public affairs, energy, telecommunications, financial services, insurance, media, retail, restaurant and consumer package goods.

The Private Client Reserve of U.S. Bank provides comprehensive wealth management solutions for high-net-worth individuals, families and foundations with investable assets of more than $1 million. It is a part of U.S. Bank’s Wealth Management Group.

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