I'm OK, economy isn't

Nov 11, 2012 @ 12:01 am

By Esha Ray

U.S. investors may be worried about the economy, but they are more confident about their own situations.

According to a survey by PNC Wealth Management, more than half the investors polled reported that their net worth has grown at least 20% since 2007, and 73% said that they have strong control over their financial future.

Meanwhile, just 28% of the group said they are optimistic about the U.S. economy. And 67% said that they are still pessimistic about the world economy.

PNC conducted the survey online in August and September among 1,115 investors with over $500,000 in investible assets and a minimum annual income of $150,000 as part of its seventh annual Wealth and Values Survey.

Thomas Melcher, executive vice president and managing executive of Hawthorn PNC Family Wealth, thinks that these results aren't about optimism but about realism.

“People are optimistic, and their wealth is up, but if you really study the data, that's not exactly the story that comes through,” he said.

Four years after the beginning of the financial crisis, most investors have a greater appreciation for the “nonmaterial wealth” in their lives and said that it is more important to live within their financial means.

“[Investors] are asking questions of how much is enough. They realize that this might be the new normal, and maybe it's not going to go back to the way it was,” Mr. Melcher said.

“I think this is an opportunity for firms to work more holistically and look at investments as more multidimensional,” he said.

Overall, investors said that the technology, health care and energy sectors are the best industries for high returns over the next year. Twenty-two percent also said that moving their investment portfolio mix away from stocks was their most successful move in the past year, whereas 23% said that shifting their wealth into cash was least successful.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

How 401(k) advisers can use 'centers of influence' to grow their business

Leveraging relationships with accounting, benefits, and property and casualty insurance firms can help deliver new business leads for retirement plan advisers.

Latest news & opinion

Things are looking up: IBDs soared in 2017

With revenue up, interest rates rising and regulation easing, IBDs are soaring.

SEC advice rule may give RIAs leg up over broker-dealers

Experts say advisers will be able to point to their role as fiduciaries as a differentiator in the advice market.

Brokers accept proposed SEC rule on who can call themselves an adviser

Some say the rule will clear up investor confusion, but others say the SEC didn't go far enough.

SEC advice rule: Here's what you need to know

We sifted through the nearly 1,000-page proposal and picked out some of the most important points.

Cadaret Grant acquired by private-equity-backed Atria

75-year-old owner Arthur Grant positions the IBD for the 'next 33 years.'

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print