Tiger 21, a club of more than 800 investors, said that its members have raised their cash holdings to 19 per cent of their total assets.A GROUP of multimillionaire investors in the US are hoarding cash at unprecedented levels.
Tiger 21, a club of more than 800 investors, reported on Thursday that its members have raised their cash holdings to 19 per cent of their total assets on concerns over the economic consequences of the Covid-19 pandemic in the US. That's up from about 12 per cent since the start of the outbreak. About a quarter now expect the crisis to continue until the end of next June, the group said.
"This rise in cash is an extraordinary change - statistically, this is the largest, fastest change in asset allocation Tiger 21 has seen," said Michael Sonnenfeldt, chairman of the club, whose participants typically have more than US$100 million in assets."In trying to build resources prudently, members have gained liquidity and will not immediately reinvest in those areas in order to keep and build cash to weather this storm.
With almost 180,000 Covid-19 deaths, the US is among the worst-affected nations from the virus. It endured the worst recession on record in the second quarter, and economists are increasingly warning about a prolonged slowdown if lawmakers fail to provide US$1 trillion to US$2 trillion in relief funds this fall.
The economic hit from the pandemic has failed to put a halt to rising stock prices. The S&P 500 Index closed at a peak on Thursday, taking its rebound from a March low to 56 per cent thanks to continued support from the Federal Reserve and strength from tech companies catering to people stuck at home.
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