Fifty-two percent of the wealthiest Americans, those with a net worth between $5 million and $25 million, not including their primary residence, plan to buy individual stocks or stock funds in the coming 12 months, according to a new report from Spectrem Group.
This makes equities the most popular choice for these ultra-high-net-worth investors, followed by the intention of 35% to invest in cash or cash equivalents, 33% to invest in international securities and 31% to put money in fixed income products.
These investors currently have 10% of their total investable assets in such cash products as money market funds, checking and savings accounts, Treasury bills and CDs, with an average account balance of $659,000 at the end of 2010.
“After pulling away from equities during the recession, America’s wealthiest investors are looking to jump back into stock investing,” said George H. Walker, Jr., president of Spectrem Group. “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.”
The report, “Ultra High Net Worth Investor 2010,” is based on a survey of 516 households in November 2010.