Fidelity Investments surveyed customers with at least $250,000 in investable assets and the outcome was positive.
Survey results showed that more than three-quarters (77%) of high-net-worth investors expect to beat or match the market this year with approximately half (48%) feeling the stock market is appropriately valued and 17% feeling it is undervalued.
However, 70% of investors are concerned about the Federal Reserve reducing support for the bond market and, as a result, 88% of those investors are holding an average of 20% of their portfolio in cash for the opportune moment to invest.
Topics included potential tax increases, sector growth and opportunities in emerging markets.
“Investors feel optimistic that the economic recovery in the U.S. is under way, yet the memory of the market downturn is causing that optimism to be tempered,” said John Sweeney, Fidelity executive vice president, Retirement and Investing Strategies in a statement. “As investors feel more certain about job growth, encounter strong corporate earnings and better understand fiscal policy changes, they will invest in the market with more confidence. That confidence leads to better decision making and enables investors to withstand volatility in the market.”
