Coronavirus Anxiety Hits Wealthy Investors Who Remain Pessimistic About Stocks And U.S. Economy

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Wealthy investors are concerned about COVID-19 and its short-term impact on markets, yet remain optimistic about the long-term economic outlook

Despite these concerns, investors remain resilient in their long-term economic optimism, with 66% of investors optimistic about the U.S. economy in the long run in January and even more, 77%, feeling that way in late March, with an ensuing drop in pessimism from 14% to 8%.

This strategy squares well with what some of Wall Street’s big shots are saying, Billionaire investoron Friday that he believes the market has hit a bottom after weeks of economic turmoil as a result of the pandemic. Advisors have been preaching the patient approach since the beginning of the economic instability following the market high in mid-February. Buyers saw gains last week with the Dow and S&P 500 up 12.8% and 10.3%, respectively, marking the best week for either in more than a decade and, for the Dow, dating back to 1938. Following an unprecedented descent into a bear market, these quick gains technically qualified as a return to a bull market.

Hands-off investing has been the trend over the past decade with index funds routinely beating out active investment. Berkshire Hathaway’s Warren Buffett won a bet against hedge fund investor Ted Seides when the S&P 500 returned 8.5% annually over the ten-year stretch from 2005 to 2015, with Seides unable to find a hedge fund producing better returns.

 

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My thoughts and prayers go out to the wealthy

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Asia stocks set to trade lower as investors continue to assess economic impact of coronavirus pandemicInvestors will continue to watch for developments on the global coronavirus outbreak, which has already infected more than 691,000 worldwide and taken at least 32,000 lives, according to data compiled by John Hopkins University.
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