risk tolerance
Millionaires more likely to invest globallyPosted by RJ and Makay on Mar 13, 2012 |
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Financial advisors that cater to the wealthy should carefully follow global news that could impact clients’ portfolios and be ready to justify their decisions in close communication with those clients, according to a recent survey by Spectrem Group, a company that specializes in retirement for the affluent. The survey measured the responses of 1,146 wealthy investors with $1 million in investable assets about their investment attitudes and where they look to for advice.
Since the 2008 financial crisis, investors have remained cautious, though their risk tolerance has actually held steady, according to the Investment Company Institute’s (ICI) 2011 Annual Mutual Fund Shareholder Tracking Survey. In May 2008, 36% of fund-owning households said that they were wiling to take substantial or above-average risk. That level of risk tolerance has held at 29% for the three years since the crisis.
A new quarterly survey released Monday by Northern Trust indicates that risk managers were more risk averse in the second quarter of 2011, yet almost three-quarters of survey recipients are optimistic about job growth and over half expect short-term corporate earnings growth. 42% of managers said they were more risk averse in Q2 than they were in Q1 2011, when 36% of managers said they were more risk averse than in the previous quarter.
