The financial crisis, however, has not yet caused large shifts in investment behavior among the wealthy. Overall, 65% of Mass Affluent investors say they have not changed their long-term investment strategy. Of those who have changed it, the vast majority have become more conservative.
On the other hand, Millionnaire investors ($1M+ investable assets) - though similarly shaken by the financial crisis - appear to be viewing the economic crisis as a buying opportunity. Some 20% of millionaires bought stocks or other investments during the last three months, compared to 11% of Mass Affluent investors.
Though 62% of Millionaire investors say they have not changed their long-term investment approach, the proportion of them who plan to increase their overall investments has increased for the first time in a year, from 28% to 37%.
- More than half of the Mass Affluent and Millionaire segments have done nothing differently in the short or long term as a result of the financial and economic situation.
- About 20% of both groups have contacted their investment advisor for advice.
- About 10% have shifted assets or pulled assets from the stock market.
- The largest investment reductions were in stocks and mutual fund investments, though this may be because of a reduction in the value of these investments, rather than a change in investment behavior.
- Only 3% or less have changed their investment provider or advisor.
Opinion of Government Rescue Plan
Millionaire investors have a more favorable perception of the government’s plan than the Mass Affluent, though the majority still do not agree with it. About 25% view it favorably, compared with only 10% of Mass Affluent investors.
About the research: The research was conducted from October 10 through October 20, 2008. Every other month, the Phoenix Marketing International Affluent Marketing Service (AMS) tracks changes that Mass Affluent and Millionaire households anticipate making to their investment portfolios in the coming three months.