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The next American wealth boom has officially begun.
It may not feel like it for many Americans. But with the Dow breaching 14,000, shareholders and investors have recovered the more than $8 trillion in wealth lost during the recession and attained levels of paper wealth they haven't seen since the Roaring Oughts.
The stock market has gone from wealth destroyer to the nation's largest manufacturer of new millionaires and billionaires. The market moves are creating a new virtuous cycle of confidence for the wealthy. A new survey from Spectrem Group shows that millionaire confidence in the economy hit the highest level in two years, led by their bullishness on the economy and corporate earnings.
"The fear is still there," said Stephen Martiros, a Boston-based, independent consultant to individual investors and family offices. "It's like they've been in a car crash. And it was far worse than they imagined. They may be driving again, in a new car on the same roads, but they're taking the corners a lot slower."
That means investing for stability and income rather than growth and risk. Martiros said that wealthy investors have more money in cash, alternative investments, real-estate and other assets that won't swing as much as stocks.
"The big change is reducing volatility," he said. "The big allocation is toward things that don't move a lot."
That means that many of today's richest investors may be missing out on the market rally. But for today's wealthy, it's worth the peace of mind.
- http://www.cnbc.com/id/100420112
It may not feel like it for many Americans. But with the Dow breaching 14,000, shareholders and investors have recovered the more than $8 trillion in wealth lost during the recession and attained levels of paper wealth they haven't seen since the Roaring Oughts.
The stock market has gone from wealth destroyer to the nation's largest manufacturer of new millionaires and billionaires. The market moves are creating a new virtuous cycle of confidence for the wealthy. A new survey from Spectrem Group shows that millionaire confidence in the economy hit the highest level in two years, led by their bullishness on the economy and corporate earnings.
"The fear is still there," said Stephen Martiros, a Boston-based, independent consultant to individual investors and family offices. "It's like they've been in a car crash. And it was far worse than they imagined. They may be driving again, in a new car on the same roads, but they're taking the corners a lot slower."
That means investing for stability and income rather than growth and risk. Martiros said that wealthy investors have more money in cash, alternative investments, real-estate and other assets that won't swing as much as stocks.
"The big change is reducing volatility," he said. "The big allocation is toward things that don't move a lot."
That means that many of today's richest investors may be missing out on the market rally. But for today's wealthy, it's worth the peace of mind.
- http://www.cnbc.com/id/100420112
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