July 5th, 2018 3:45 PM by Eric Fang
Equities markets are duller than dull right now and for the wealthy investor in the U.S. it may be about more than just the summer blues. It’s dull enough, in fact, that the wealthy are pouring back into cash according to a CNBC survey of American millionaires who said that in the next year they’re more likely to stock up on cash and bonds than equities.
Markets are in correction mode, and wealthy investors aged 55 and under, and investors with $5 million or more, are no longer keen on pumping money into the stock market.
According to the survey, conducted for CNBC by Spectrem Group back in April — and since then the stock markets have gotten worse — short-term investments are on the rise among the wealthy, and equities outflows are hitting new records.
And it’s not just those with $5 million. The survey of 750 Americans with $1 million or of investable assets showed a similar pattern.
Of all millionaires surveyed, only 17 percent said they planned on increasing their exposure to equities in the next year, while 25 percent said they planned to increase short-term holdings in that same time period. Some 34 percent of investors with $5 million or more in investable assets said they would increase short-term holdings.