Tags: US Trust | wealthy | stock | market

US Trust Survey: Rich Investors Are Worried About the Stock Market

By    |   Friday, 20 June 2014 11:36 AM

The rich are fretting about the stock market, according to a new survey.

The survey of 680 high net worth individuals with at least $3 million in investable assets by private bank U.S. Trust showed just 40 percent feel "bullishly optimistic" about stocks now.

Jim Quinlan, chief market strategist at U.S. Trust, is encouraged by the findings. He believes they show stocks can go higher when wealthy investors finally do get back into the market.

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

"There's a lot of things keeping them from jumping in with both feet," Quinlan told CNNMoney.

He explained that many rich investors are more focused on news headlines rather than the true earnings potential of American companies. Quinlan said some of their other concerns include government regulation, Washington gridlock and the ultimate effects of the Federal Reserve's massive monetary stimulus.

In the study, 10 percent of the respondents said they are pessimistic about stocks, and 12 percent are worried about the prospect of losing money on equities.

On the plus side, 42 percent of those surveyed said they are pursuing higher returns despite their perception of higher risk in stocks — a positive, considering only 30 percent of them said the same thing in 2012.

Like other investors, Quinlan said significant numbers of the rich said they sat out the bull rally of the last few years. "These investors have been whipsawed. Five years ago their big nest egg was shrinking dramatically," he told CNNMoney. "Some of these folks may have been lagging behind, now they're coming back."

Half of the wealthy investors polled claimed the social, political and environmental impacts of companies are important considerations when deciding where to put their money.

"In some shape or manner, they want to make the world a better place. It's not phony, they feel very passionate about it."

Mainstream investors also share the concern of the wealthy about the stock market.

The latest sentiment survey from the American Association of Individual Investors,
for the week ended June 18, showed only 35.2 percent were bullish on stocks, 40.7 percent were neutral and 24.1 percent were bearish.

The latest Ticker Sense Blogger Sentiment Poll from Birinyi Associates, for the week ending June 20, showed 42.3 percent were bullish, 19.2 were neutral and 38.5 percent were bearish.

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

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The rich are fretting about the stock market, according to a new survey.
US Trust, wealthy, stock, market
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2014-36-20
Friday, 20 June 2014 11:36 AM
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