Wealthy U.S. investors less optimistic than foreign peers: study

High-net-worth investors in the U.S. are more pessimistic about the economic recovery than wealthy individuals in many other nations, according to survey released today by Barclays Wealth.
JUN 23, 2010
High-net-worth investors in the U.S. are more pessimistic about the economic recovery than wealthy individuals in many other nations, according to survey released today by Barclays Wealth. Twenty-five percent of high-net-worth investors in the U.S. — defined as those with at least $1.4 million in investible assets — believe that the U.S. economy will deteriorate over the next few years, and 25% are just as gloomy about the global economic outlook, the survey found. That compares with just 18% of high-net-worth investors in Europe who expect the global economy to deteriorate over the next few years, and only 10% in the Latin America. Indeed, on the flip side, more high-net-worth investors in Latin America (29%) are optimistic about the global economy than in any other region. The ultrawealthy in the U.S. are also more disappointed in their government’s response to the crisis and downturn. Asked whether the government “handled the economic downturn well,” just 18% said yes, compared with 20% in Europe and 59% in Latin America. The survey also showed that high-net-worth investors in the U.S. are more suspicious of the government than they were before the downturn, with 60% saying they trust the government less now. Perhaps to compensate for all the pessimism, more said they’re taking an active role in managing their own investments, with one in five high-net-worth investors in the U.S. saying they spend more hours per week actively investing and 44% saying they are reviewing their portfolios more than they have in the past. Financial advisers are also not reaping any benefits, because high-net-worth investors have not increased how often they speak to financial adviser, according to the survey. The Barclays survey was based on interviews with more than 2,000 individuals in over 20 countries around the world. The interviews took place in February and March.

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