Over the past could of years, a majority of affluent investors have said “non,” “nein,” or “nie” to international investment. Global equities have under-performed the S&P 500. As Time magazine recently reported, one index that focuses on European stocks lagged behind its U.S. counterpart by more than 13 percentage points annually.
In Spectrem Group wealth level studies conducted in the fourth quarter, just 21 percent of Millionaire households with a net worth up to $4.9 million (not including primary residence) indicated they would be investing internationally in 2015. Intent was higher among Ultra High Net Worth investors with a net worth between $5 and $24.9 million (35 percent).
When asked which countries or regions in which they would be likely to invest, a higher percentage of Millionaires indicated a preference for China over Europe (26 percent vs. 19 percent), but that represents a five percent drop vs. an 8 percent increase, from 2011, respectively).Similarly, among Ultra High net Worth investors, intention to invest in China dropped 7 percent while intention to invest in Europe ticked upward 3 percent between 2011 and 2014.
The percentage of Millionaires and Ultra High net Worth investors wanting to invest in Brazil,has dropped precipitously, 11 percent and 13 percent, respectively.
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