High net worth Americans have bounced back from the global
recession which began in 2008, according to a new study by Canada’s BMO
Private Bank.

The study involved 482 American adults with investable
assets of $1 million or more, and found that 61 per cent feel better off today
than they were before September 2008, with only 7 per cent reporting that
they are worse off.

The study is the second in a series by BMO Private Bank that
examines trends among HNW US individuals. The research revealed that
a majority (60 per cent) of those surveyed are optimistic about what the
future holds for the US
economy, while 53 per cent feel positive about the outlook for the Asian economy. Less than a third think the situation in Europe
will improve.

“We’re hearing a renewed sense of optimism when speaking to
our clients. But they’re also aware that the economic situation is quite
fragile; they want to ensure, when managing their wealth, that they are
insulating themselves as best as possible against any potential market
downturns,” said Terry Jenkins, president and chief executive, BMO Private Bank.

Wealthy Americans have, by and large, returned
to pre-recession spending levels by spending more or the same in
areas including entertainment and leisure, travel, hobbies and clothing.

“It’s a positive development that so many high net worth
Americans have returned to, at the very least, pre-recession levels of consumer
spending,” said Jenkins. “This represents an indication of the level of confidence
they have in the country and also helps spur further economic growth.”

When asked how they felt about their current savings and
investment plans, more than 90 per cent of the respondents said they are feeling
upbeat. They are especially bullish on equities and
real estate, which were identified as the top two options to provide solid
returns in the next five years.

In terms of where they are investing their money, respondents
were most optimistic on the technology (80 per cent), energy (77 per cent) and
health (77 per cent) sectors, while the outlook for the manufacturing, agricultural
and mining sectors is increasingly negative.