Millionaire investors expect double-digit drops in US stocks next year, the most pessimistic survey since 2008, according to the latest poll.
US financial media CNBC Millionaires Poll results show 56% of respondents are bearish on US stocks and estimated next yearS&P 500 indexIt will decrease by 10% and almost a third of respondents even think that the decline will exceed 15%. The survey was aimed at investors with $1 million or more in investable assets.
They also expect a decline in the stock market to lead to a decline in personal wealth. When asked to name the biggest risk to personal wealth in the coming year, 28% of respondents said the stock market represents the highest percentage. The last time millionaire investors were this pessimistic was during the global financial crisis.
George Walper, chairman of Spectrem Group, said inflation, rising interest rates and potential recession are all worrying wealthy investors.
More than a third of respondents expected the overall return on investments (including stocks, bonds and other assets) to turn negative next year, and most respondents said the rate of return would be less than 4%. With short-dated Treasuries yielding over 4%, these yields are low.
By holding on to cash, many millionaire investors intend to stay on the sidelines, at least for the foreseeable future. 46% of respondents said they have more cash in their portfolios than last year and 17% said “much more”.
Millionaire investors were also bearish on the US economy, with 60% saying the economy would be “weak” or “much weaker” by the end of next year.
However, the age gap has contributed to a gap in the perception of millionaires. 81% of millennial millionaires surveyed expect their net worth to grow by the end of next year, while 46% expect an increase of more than 10%. More than half of millennial millionaires surveyed expectS&P 500 indexExpect gains of 10% or more next year. That compares with 61 percent of baby boomer millionaires surveyed who expect their net worth to decline or be “significantly lower” in the next year.
