Eighty percent of high- and ultra-high-net-worth Americans plan to spend the same amount or more in 2023 than they did this year, according to research released this week by Clarfeld Citizens Private Wealth.
The study found that 51% of wealthy Americans will allocate additional resources next year to travel, 13% to their businesses and/or franchises and 10% to real estate.
The findings also showed that 87% of study participants expect the U.S. to enter a recession soon, if it has not already done so. Thirty-one percent said inflation will have the biggest negative effect on their financial portfolios, while 27% cited market volatility and 11% rising interest rates.
"Wealthy Americans have more tools at their disposal to ride out a recessionary environment, but they're not immune to volatility," Matthew Ruffalo, head of investment solutions at Clarfeld Citizens Private Wealth, said in a statement.
"The biggest planning priority for wealthy investors in 2023 should be to ensure one's portfolio allocations and savings strategies are prepared to weather both short- and long-term headwinds."
Wakefield Research conducted an online survey between Oct. 18 and Oct. 31 among 200 individuals with $2 million or more in investable assets.
Which Assets They're Buying
Eighty-one percent of survey respondents said they plan to make changes to their portfolio allocations in 2023. Forty-one percent will increase their investment in equities, 37% will do so in fixed income and 29% in cash.
Sixteen percent plan to decrease allocations to cash, 14% will reduce leverage or debt financing and 12% will cut back on equities in the year ahead.
The study showed that three primary catalysts for changes remain the same for 2023, regardless of whether respondents planned to change their allocation: adding protection from volatility; generating robust, long-term returns; and diversifying portfolios.
