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Rich pile back into equities

Wealthy investors in the US are once again warming up to equities, following a long-lasting love affair with bonds.

Wealthy investors in the US are once again warming up to equities, following a long-lasting love affair with bonds.

According to research by consultants Spectrem Group, 71% of ultra-high net worth individuals plan to invest in equities this year, up from 52% two years ago. It follows a strong rally of equity markets in 2012.

Equities were ranked as the top investment pick among UHNW individuals – classed as those worth more than $5 million (€3.76 million) excluding their primary residence – with cash-based instruments coming in second, at 51%.

“Wealthy investors remain cautious because of the ongoing economic and political uncertainties,” said George Walper, Spectrem Group president. “As a result, they are balancing their increased exposure to equities by retaining a sizable amount of cash.”

The report, called Wealth Management Series: Product Usage and Perceptions of Providers, also found that 55% of millionaire investors – those worth between $1 and $5 million – were likely to invest in equities this year, compared to 45% two years ago.

Fixed income remained the same at 30%. 

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