Even as the world continues to recover from the global economic crisis, a survey suggests that many of the wealthiest households within the United States are once again making a beeline for stocks. Chicago-based wealth research firm Spectrem Group conducted a recent survey whereby they found that 52 percent of households in the US with net worth between $5 million and $25 million have named stocks as their investment of choice for the coming year.
Thus, stocks leads the list of investment options for this economic group. Coming in second with 35 percent of the votes is cash. Meanwhile, 33 percent voted for international investments and 31 percent picked fixed-income products.
This certainly bodes well for the future of Wall Street. During the recession, many of the richest Americans had pulled their money out of stocks as prices fell dramatically leading to considerable losses. George H. Walper Jr., President of Spectrem Group admitted as much when he agreed that the wealthiest groups in America are planning to return to stock investments once again.
According to the Spectrem Group, the economic groups that they considered in the survey have an average sum of $659,000 that they are free to invest. Put it all together and you have a huge sum of billions which could fuel a further bull run in the US stock markets.
Having said that, their return to stocks could be rather slow. Many of the ultra-wealthy have lost much of their earlier confidence and are likely to be more wary before making new investments.
Via: WSJ Blogs