More than half (53 percent) of US high-net-worth investors predict that their portfolios will rise in value by the end of the year, while a third say it will stay the same and only 14 percent expect it to worsen, according to a new poll by Morgan Stanley Wealth Management.
The poll also finds 41 percent of investors say they will have a better sense of financial well-being by the end of the year, while 44 percent expect no change and 14 percent expect a deterioration. At the same time, only 40 percent predict the global economy will improve, while a third expect no change and 27 percent say it will worsen.
The stock market rally through most of the first quarter of the year and speculation of a recovery in the US economy have strengthened optimism among high-net-worth investors, or those with at least $100,000 in investable assets. The US budget deficit, however, remains a major concern, cited by 88 percent of those interviewed, as does the nation’s economic outlook, cited by 86 percent. Eighty-three percent express concern about the trade deficit and 87 percent fear foreign conflicts.
More than half (56 percent) of investors surveyed say the US is a ‘good’ place to invest, making it the most popular investment region in the poll. Next is Brazil, with 43 percent, followed by China at 39 percent, India at 37 percent and Japan at 32 percent. Less than a fifth (17 percent) cite western Europe as a good place to invest and just 7 percent name the Middle East.
The European sovereign debt crisis is cited as a major reason to steer clear of investing in Europe, with 63 percent saying the risks have increased over the past year. Fifty-one percent of investors say the European crisis has diminished their appetite for investment globally over the past year.
When asked about their search for investment advice, 83 percent of the women surveyed say they have one or more financial advisers while 73 percent of the men say the same. The most sought-after attribute in a financial adviser is the ability to clearly communicate how assets can affect a retirement income stream, cited by 87 percent of respondents.
Morgan Stanley’s Investor Pulse poll was taken between January 14 and March 3, and covered 1,000 investors aged between 25 and 75.
