Wealthy investors plan to step back into the market in the coming months, according to Spectrem Group’s recent investment preferences survey. This survey was conducted with more than 500 investors with more than $500,000 in investable assets during January. It was completed, however, before the recent dramatic downturn in the markets.
Stock Mutual Funds was the investment vehicle cited most as the type of investment they would pursue in the near future. Stock mutual funds gained 15 points from the December, climbing to 43.17, a three-year high. Stocks also gained 12 points in popularity to 35.10, a four-month high. “Not invest,” which tracks investors’ intention to remain on the sidelines, dropped 18 points to 31, a four-month low.
Cash investments gained five points to 23.17, another four-month high, while Bond Mutual Funds gained seven points to 16.76, a six-month high. Intention to invest in Real Estate (8.28 points) and Bonds (4.71) was basically unchanged from December.
The research analyzes the differences in investment preferences between Millionaires and Non-Millionaires. Millionaires are more likely to invest in the market than their Non-Millionaire counterparts. “Not Invest” fell 17.4 points among Millionaires to 22.7, a four-month low. “Not Invest” among Non-Millionaires was higher, 39.8 points, but this was also a more than 17-point decrease from the previous month and a seven-month low.
For both Millionaires and Non-Millionaires, Stock Mutual Funds and Stocks are the investment vehicles of choice in the coming month. Despite the recent market challenges, it is likely that these will remain the investment products of choice within the next few months.
For more information about Spectrem's High Net Worth Advisor Insights Newsletter click here