In spite of feeling secure financially and also confident about the fiscal future, loads of cash is being held by the rich instead of being invested somewhere.
Wealthy investors tends to be much confident and optimistic on one hand But it does not extend to stock markets or broader economy necessarily .According to survey, 16%only have planned to have the cash invested in next few months
The wealthy investors today seem to acquire split personalities.
Some part within them is confident and optimistic. Many surveys show they’ve returned to the years of pre-crisis boom when it is matter of their outlook that is for their finances, retirements and investments.
There’s this darker side then. They take dimmer view when it is the matter of their outlook in the stock markets or on broader economy.
BIG CLIENTS: rich are targeted by advisers
HIGHER EDUCATION: whether the college tends to be worth it?
TECH: investor prize of $27T’Generation D
The contrast was shown in a latest survey from the U.S. Trust. Its “Insights on Wealth and Worth”, which happens to poll people worth 3 million dollars or above, showed 88% respondents today financially feel secure and 70% of them are confident regarding the security of finances in future.Now, many millionaires place great priority to the growth rather than preservation of wealth, which is a notable reversal compared to last year, the time when preservation topped the growth.
Anyway, wealthy people still are holding huge amounts of cash. Survey tells that around 56% have cash in substantial amount. Only 16% have planned to invest this cash in next few months and 40% plan on investing it within the following 2 years.
This might be the sign that psychologically, wealthy are quite confident though not really ready to abandon security of the cash holdings, as told by Keith T Banks, the president of ‘U.S. Trust and Bank of America Private Wealth Management.
He also said that this could be the case where psychology does come first and that they have not just taken the next step for their money so far,There isn’t any hard data about amount of cash held by the wealthy but a study last year in America showed that American affluent (the ones with minimum $100,000 disposable income) at least had six trillion dollars in savings. It was told by Harrison that this number, by the year 2014, could increase to twelve trillion dollars.
Of course, unless the wealthy begin to put the money into market.