Wealthy investors find opportunities in stock market sell-offs

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Wealthy investors and family offices shied away from stocks leading up to market swings this week, but many saw the drop in prices as an opportunity for tax savings and estate planning, according to wealth advisors.

Private banks and wealth managers say their clients have been reducing their stock holdings for over a year as part of a broader shift from public to private markets in light of recent concerns about an overheated tech sector. According to a UBS family office survey, family offices have 35% of their portfolios in private equity — the largest of any asset class — compared with just 28% in equities.

“So you’re taking advantage of the depressed values. Tax advisors get generally excited about these environments because it opens up new opportunities.” One group of clients that’s more sensitive to the recent bouts of volatility is made up of corporate founders and top executives.

 

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