More than half of America's wealthiest investors are eyeing a return to the equity markets in 2011, according to a new report released Tuesday by Spectrem Group.
A total of 52% of U.S. households with a net worth between $5 million and $25 million, not including primary residence, say they are likely to purchase equities over the next 12 months, according to Spectrem's "Ultra High Net Worth Investor 2010."
This makes equities, which include individual stocks and stock mutual funds, the most popular investment choice for ultra high net worth investors in 2011, surpassing cash (35%), international investments (33%) and fixed income products (31%), the report says.
"It's not that the ultra wealthy are feeling more optimistic than they were in 2009," said Catherine McBreen, Spectrem's managing director, in the report. "It's more that they realize cash is not their only investment option. Despite overall concerns about the economy, they are looking for opportunities and are finding stocks to be particularly appealing."
"With more than half of the nation's wealthiest investors likely to buy equities over the course of 2011 and given the sizable cash balances this group has amassed, stock market investors across the board may have even more reason to look forward to 2011," said George H. Walper Jr. (left), president of Spectrem Group, in a statement.
