The Dow’s resurgence this year has convinced many wealthy investors to reinvest their money in equities, but those rich households are still expressing some trepidation about the market’s health.
According to the latest “High Net Worth Advisor Insight” report by the Spectrem Group, 16% of people with more than $500,000 investable assets were convinced to invest in equities when the Dow reached 9,000 in July. An additional 15% had already returned to equities. Approximately 26% will reinvest once the Dow tops 10,000. This would mean that more than 50% of wealthy investors are investing in equities again. However, 11% of these investors said they will never invest in the markets again.