Surveys
Wealthy Americans Buoyant On US Economy But Wary Of Possible Downturns - Survey

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.