The wealthy are investing like a market bubble is here, or at least near

  • 📰 CNBC
  • ⏱ Reading Time:
  • 86 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 38%
  • Publisher: 72%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

A majority of millionaire investors say a stock bubble is occurring, but their market risk appetite is still going up, with a shift in portfolio strategy.

If an investor with $1 million or more in the market thinks that a stock bubble is already here — or soon enough one will be coming — what is the correct response? According to a new survey from E-Trade Financial, the answer is to keep investing in stocks, with more emphasis on undervalued sectors of the market.

"There is a broader recognition of an economy that is improving and signs that the factors are in place for the market to move higher," said Mike Loewengart, chief investment officer at E-Trade Financial's capital management unit. Here are a few findings from the E-Trade survey that speak to where the investor mindset is right now amid the push and pull between risk and reward.There is a lot of focus and chatter right now about an overextended market and a dotcom bubble-like environment, making it hard to tune out the noise for many investors. But among these affluent investors, even with their own bubble fears rising, they are increasingly bullish and more bullish than the broader investor universe.

The percentage of millionaires who say they are making changes to allocations in their portfolios ticked up for a second quarter in a row, by 6%, to almost one-third overall . The percentage of millionaires moving into cash remains very low but did tick up from 5% last quarter. "There's the momentum factor. People want to continue to believe where they've seen strong returns it will continue, but some recognize it can't go up forever," Loewengart said.

Millionaires are shaking their home country bias and taking greater interest in investments outside the U.S., with interest up this quarter 9 percentage points. The percentage of millionaire investors who said international markets were more appealing to them in Q1 2021 rose from 27% to 36%.Over the last three years, thehas outperformed the S&P developed international and emerging market indices. The last time those international markets outperformed the U.S. large-cap index was 2017.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

if you think the US$ has no value and the asset more valuable than money than you should put all the money you have in the market and let the DoW and Nasdaq go beyond the real value. myself, I believe that cash is king right now.

Every year since 2015 they’ve been saying this

Did we just print a whole lot of currency and give it to rich people? What did we expect?

Market kills consensus...

Doesn't it make a difference the age of the respondents and what decisions they made ahead of a possible cap gains tax increase?

perfect image

LiveSundayExpo The MESSIAH is coming If you intend to spend your Eternity in the Kingdom of GOD, you MUST prepare in Holiness.

Bitcoin is in a bubble - bad, don't invest Stonks are in a bubble - you should really invest more Gotta love CNBC and mainstream media 😂😂

The music stops at some point and usually retail get stuck without a chair 🪑

Lol

BTC DGB

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in CA

Canada Canada Latest News, Canada Canada Headlines