The coronavirus struck the physical health of humans across the world and struck the financial health of wealthy Americans at the same time.
Spectrem’s three-month study of the financial and economic impact of the coronavirus – Corona Crash – What Advisors Should Be Saying To Investors Now – examined just how devastating the pandemic has been on the financial situations for affluent and wealthy investors. The report includes information about investors and their attitudes toward their advisors, their own financial future and the financial future of the American economy as a whole.
The study was first published in March, and the April edition came out April 13. In the latest edition, 62 percent of investors said they lost at least a fair amount of their net worth, and 21 percent said the losses were significant. That includes 71 percent of professionals (doctors, lawyers, etc.) who have lost a fair amount of net worth, and 31 percent of business owners said the loss to their bottom line was significant.
The role of advisors in a situation like this is to assist clients in preventing more loss, and determining the best way to recover those losses when the economy recovers.
According to the study, 30 percent of investors with a net worth of over $15 million lost a significant portion of their net worth in the stock market drop related to the pandemic. However, almost half of those with a net worth under $500,000 reported at least a fair amount of net worth loss, and those investors are less likely to be protected from such devaluation.
Keywords: pandemic, investors, advisors, Spectrem, net worth, losses, professionals