Most American millionaires are self-made, and how they achieved their wealth as well as their financial outlook and goals influence their investment behaviors, according to a study released last week by Fidelity Investments.
Fidelity’s fifth Millionaire Outlook surveyed more than 1,000 households with investable assets of at least $1 million, excluding workplace retirement accounts and real estate holdings.
Using a scale where +100 represented the most favorable outlook, zero was neutral and -100 was the most negative outlook, the new study found that millionaires’ outlook of the future financial environment had reached +39, the highest level since the survey’s inception in 2006.
Their confidence in the future was driven by positive sentiment about business spending (+43) and consumer spending (+42).
However, they remained concerned about the current financial environment (-29), owing to their lack of confidence in the value of real estate (-75), the economy (-49) and business spending (-32). Even so, their near-term confidence continued to rise, having consistently increased by nearly 50% each year since 2009.
“One trend has held true throughout the life of this study—the millionaire investor’s outlook has been consistently pragmatic about current market conditions and pervasively optimistic about a future recovery,” Michael R. Durbin, president of Fidelity Institutional Wealth Services, said in a statement.
“In many ways, what millionaires have been thinking and doing can be a strong indicator for financial trends, as they are often the first to jump on an opportunity in the market—as they have recently with domestic stocks.”