A recent survey finds millionaires increasingly optimistic, and buying U.S. stocks
Looking for a bit of optimism in the face of today’s daily drumbeat of negative news? Look no further than Fidelity’s latest survey on the mindset and recent investing moves of some 1,000 millionaire households.1 While they too see the myriad short-term risks out there for the economy and investors, they are more upbeat on the market outlook a year from now than at any time in the survey’s five-year history.
What’s more, as a group, they are favoring equities over fixed income—a tilt that stands in stark contrast to broad investing trends: From the start of 2011 through the first quarter of 2012, investors pulled almost $15 billion from stock mutual funds, while adding more than $212 billion to bond funds.2 These millionaires’ #1 investment pick: U.S. equities.
“Successful investors lean into markets where they see opportunity,” says John Sweeney, executive vice president of Planning and Advisory Services at Fidelity Investments. “When others panic, disciplined investors rebalance or take advantage of historical dislocations in price.”
And they put time on their side. Adds Sweeney: “Most of our millionaires got wealthy over time by setting clear goals, investing diligently, allocating with discipline, and having conviction based on research and confident decision making. Those traits come with research, perspective, and patience.”
The information contained in this article does not constitute a recommendation, solicitation, or offer by D2 Capital Management, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. D2, its clients, and its employees may or may not own any of the securities (or their derivatives) mentioned in this article.
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