HWIs looking to capitalise on under-priced stocks
High net-worth individuals (HWIs) from around the world are planning to shift their cash holding into under-priced stocks as markets hit lows, an international survey reveals.
Data from a survey of 767 HWIs with investable assets of more than $2 million, by international advice firm, the deVere Group, found 76 per cent planned to increase contributions to their investment portfolios in the coming months.
deVere chief executive, Nigel Green, said many HWIs had "kept their powder dry" last year, as markets fluctuated , but were likely to buy now because of the "attractive prices" available.
"The results of this poll clearly show high-net-worth individuals now have a strong appetite to use the cash that they have held in reserve to top up and diversify their investment portfolios," he said.
"The survey overwhelmingly demonstrates that they are aware of the opportunities to buy high quality equities at the prices they want to pay. They are seeing more favourable choices to boost their portfolios for the longer-term.
"It is a sound investment strategy to put new cash to use in the market whilst prices are relatively low.
"Capitalising like this on the attractive long-term performance of stock markets is a time-honoured way that investors can successfully build wealth.
"No-one can predict exactly what the markets will do in the immediate future and it's too early to say if this is or isn't the bottom of the market. But our poll suggests that high-net-worth investors believe that it is close to the bottom and that there are major buying opportunities.
"They are moving away from a preservation approach by diversifying their investment portfolios.
"As shown by decades of financial market data, this is the correct approach to risk management."
AUTHOR
Nicholas O'Donoghue
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