Nearly 5o% of wealthy investors (>$250,000 in household investable assets) say they feel optimistic about the macro economy.
These findings came from the latest survey by AMG Funds. The survey polled approximately 1,000 affluent individual investors about their expectations. The survey focused on equity markets and the economic environment, as well as their investing plans.
* AMG Funds is the U.S. retail distribution arm of global asset management company, Affiliated Managers Group, Inc. (NYSE: AMG).
These investors also foresee fundamental changes in the economy, with the majority of respondents expecting a rise in interest rates (64%) and the rate of inflation (59%).
“The findings of our study have implications for both clients and their financial advisors. While many affluent investors are optimistic about the forward trajectory of the economy, most respondents agree that ongoing market volatility will continue to impact their portfolios – and they may underestimate the investment returns required to meet their long-term objectives in such a market environment,”said Jeffrey Cerutti, CEO of AMG Funds.
said Jeffrey Cerutti, CEO of AMG Funds.
“Given affluent investors’ defined investment goals of wealth preservation, diversification, income generation and growth maximization, our study suggests that there is a meaningful opportunity to provide more guidance and education to this client base about effective investing during uneven markets, including the benefits of active management and alternative investments within a diversified portfolio.”
Most affluent investors surveyed also admitted to a knowledge gap on alternative investments. They revealed they know little or nothing about alternative investments:
For the purposes of this study, alternative investments include investments other than stocks, bonds or cash. Examples range from hedge funds to private equity, real-estate funds and other non-traditional investments.
The AMG Funds survey of nearly 1,000 affluent investors was conducted online among those with more than $250,000 in household investable assets, who participate in making household savings and investment decisions. Data was collected between September 10 and 16, 2015, among respondents, age 18 or older, through an online consumer panel.
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