The current volatility running through stock and bond markets has caused many investors to retreat to the sidelines, opting to hold cash rather than putting their hard earned money on the line.
But hiding out in cash can’t last forever, at some point they’re going to have to commit to the market or watch their savings slowly ebb away due to rising inflation. So where are affluent investors looking to invest once current volatility dies down. Chicago based Spectrum Group which conducts research into the investing habits by high net worth individuals have carried out a survey to find out.
Spectrem’s Millionaire Corner’s monthly survey of investment trends among affluent investors shows that Stock Mutual Funds continue to be affluent investors’ investment vehicle of choice, though this reading dropped 11.88 points to 31.29, basically unchanged from the reading one year ago.
“Not investing” as a response gained 11.32 points to 42.32. This is the biggest month-to-month gain in four months, and just slightly less than the 43.8 reading in February 2013.
Intention to invest in Cash in the coming month dipped 2.99 points in February to 20.18. This is slightly higher than one year ago, when the reading was 18.3 points. While bond mutual funds dropped 4.88 points to 11.88, while Bonds gained 2.55 points to 7.26, a five-month high.
The report further breaks down affluent investment trends and preferences by Millionaire vs Non-Millionaire Households. With millionaires, being more likely to invest than their Non-Millionaire counterparts. “Not invest” among Millionaires did rise 15 points in February to 35.7. Among Non-Millionaires, this reading was 49.3, a gain of 9.5 points.
But the investment vehicle of choice in the coming month for both millionaire and non-millionaire investors, continues to be stock mutual funds, although for millionaires, both categories suffered double-digit drops.
With stock mutual funds dropping by 13.2 points to 36.9, while stocks fell 14.3 points to 29.1. Millionaires, too, indicated a retreat from investments in cash, which dropped 3 points to 23.5, while bonds gained 2.8 points in February to 9.8, a five-month high.
You can read the full report here!
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