Stock Market Risk Deterred The Rich

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Now, the billionaire who is engaged in real estate investment and business consulting business puts more money in cash and private enterprises, and less investment in the US stock market, so that he can better evade himself.

Mantell is president of Mantell Advisory LLC., an investment consultancy based in New York.

He said, "now, the first principle of my investment is to be harmless without making major mistakes.

Investment is no longer a mere pursuit of rewards.

For me, investment is to truly diversify and not to rely on traditional stock markets. "

In 2008, it suffered great risks and great consequences.

However, their actions will cost the whole country.

Market rebound is often driven by the rich people's investment activities and willingness to take risks. Generally speaking, the rich view of the economy is more optimistic than ordinary investors.

However, the current survey shows that the rich belong to those who are most pessimistic about the economy.

Instead of putting money into stocks or companies that create jobs, they bet on the market's continued volatility and slow growth by hoarding cash, gold and other safe assets.

"If the rich choose to avoid it, the economy will be at risk," said Mark Zandi (Mark Zandi), the chief economist of Moodie's S analysis (Moody 's Corp).

Losing confidence in our economy will soon turn into a vicious circle of self reinforcement and self actualization.

Of course, not all the rich are small enough to invest.

However, from the present point of view, the worried rich are behaved like experienced smart investors.

Their cautious behavior shows an unstoppable psychological change that began in the middle of 2000-2010 years, when many rich people fought against the rising stock market with gambling mentality.

According to Spectrem Group, in 2008, households with more than $1 million in investment assets lost 30% of their investment, and nearly 1/5 of millionaires lost more than 40% of their investments.

Now, the rich are more concerned with maintaining rather than increasing their wealth.

Michael Sonnefeldt, the founder of Tiger 21, a New York based billionaire investment club, said that its members currently hold about 14% of the average cash, about two times the 2000-2010 mid.

Gold accounts for about 5% of the club's members' investment, but some members have more than 20% gold holdings.

Sonal Field said, "our members did not close the warehouse two or three years ago, and now they are still in the battle.

It is easier to save money now than to earn money.

Therefore, our members have eliminated many risk factors.

The price they pay may be reflected in the lower return on investment in 2009 and 2010.

A survey conducted by Institute for Private Investors found that investors with more than $30 million in investable assets had a return of 11.3% in 2010, while the standard & Poor's 500 index was the same period.

Tommy Gallagher, a former Wall Street administrator, is a wealthy investor.

He said that the stock market rose last year, and he focused on safety investment which only brought meager returns. He complained about it.

He almost put more money into the stock market, but he resisted the temptation.

He said, "this gap made me frustrated all year round.

When you go to a party, everyone else makes money. If you don't earn any money, who wants to be such a fool? "

Gregory Curtis, chairman and founder of Asset Management Co Greycourt in Pittsburgh, said that he and his clients never really believed in the so-called rebound because it was mainly driven by the large amount of liquidity injected into the Federal Reserve by the US Federal Reserve (Federal), rather than driven by strong economic fundamentals.

He said, "I'm sure some of the rich families blindly trust Bernanke's words and fire up Bernanke.

But there are not many such families as I know.

Curtis said that many customers called to ask questions this week.

But they are calm, basically looking for opportunities.

There was no panic in 2008 in their tone.

Deborah Midanek, who has a lot of investment, is an expert in turning losses into profits and was originally a mortgage expert.

After 2008, she basically gave up the stock market, she said.

She did not lose much in that crisis, thanks to her investment in the commodities market.

But she said the crisis is a defining moment for her and her many wealthy friends.

Now she owns farmland and real estate.

Her portfolio has more than 10% of her cash. She said, "this proportion is already very high for me."

"After 2008, I realized that I knew nothing about the stock market," she said.

I think people like me would say, 'who cares about the stock market?

I want to invest in what I can understand. "

However, she added that the stock price had fallen so much recently that she could not help buying some stocks.

"I bought shares in a company," she said.

I am a member of the board of the company, so I know it. "