Investor Psychology
Recession Creates Pessimism Among High-Net-Worth Investors
Kiplinger News
May 24, 2010
High-net-worth investors are still reeling from the recession, a new Barclays Wealth survey shows.
The wealth-management firm - a division of financial services company Barclays Group - polled more than 2,000 investors with assets in excess of $1.5 million. Five hundred of the respondents were American.
Many of the survey respondents reported being bearish on the economy's near-term growth prospects. Of the U.S. investors that Barclays Wealth polled, about half believe the American and global economies will deteriorate at least until the end of the year.
In light of the respondents' negative sentiment, it's not surprising that 44 percent are reviewing their portfolios more often than they did before the downturn. The sentiment itself is somewhat striking, though.
A number of economists believe the recession ended last summer. Even doubters can't argue with recent data indicating that the U.S. economy has been expanding for three straight quarters - and a survey released May 24 by the National Association of Business Economists shows that economists polled by the group are expecting 3.2 percent gross domestic product growth in 2010 and 2011.
To be sure, there are lingering worries in the economic picture. But that picture appears to be brightening.
