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November 15, 2010 at 10:08 AM
Members of the ultra-high-net-worth (UHNW) peer group Tiger 21 are “concerned about the economy/investment climate” according to an announcement from the group.
Tiger 21 members are known for their active efforts to share with each other, in small group, peer-to-peer discussions, their thoughts on investing as well as other issues outside of finance and investing that affect wealthy families and individual investors. The investor education-focused group brings in outside experts frequently to speak with these investors, as well.
For the privilege of belonging to the group, the 140 members, who include successful business executives, inventors and entrepreneurs pay a membership fee, participate in learning groups and defend their portfolio strategies in small group settings. These investors collectively have $10 billion to invest.
Members participating in the survey, conducted during Q3 2010, are thinking about risk in a new way, according to the group’s founder, Michael Sonnenfeldt, who is also its chairman. “In today’s market assessing risk is an entirely new exercise. Previously, investors looked at past volatility as the determining factor on how to allocate assets, when in fact the only risk that matters is future risk. Risks abound in the current marketplace – in the economy, with government actions or inaction, in the financial markets and even in society with fear of terrorist attacks. Yet our members have not been paralyzed into inactivity,” he stated in the release Tuesday.
‘Political Risk’ a Top Concern
Members pegged “political risk,” 13.5 %, as their top concern for investing, with “credit risk on a global level” next, 11.43%, followed by risk of a “terrorist attack,” 11.2%. Of participants, “nearly 37.9% believe we will experience a terrorist attack on U.S. soil between one and three years time,” the release said.
Domestic risks were also high on the list for members, with members ranking those concerns this way:
- “Too much government spending,” 17.3%
- “Increase in personal income taxes,” 16.9%
- “Increase in government intervention in the private sector,” 16.9%
- “Lack of clear leadership,” 14.5%
- “Increasing business taxes,” 13.2%
- “Political gridlock,” 12.1%
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