Tuesday, November 16, 2010

Market Moves for Millionaires

Are you still fully invested in the stock market, after all the ups and downs of the last few years? A new survey from U.S. Bank found that nearly all Americans with a million dollars in investable assets have stayed in the market - 92 percent of them kept their money in equities, and 43 percent of them continued to actively buy and sell stocks.

These millionaires are also recovering quite nicely; 90 percent of them say their investments are performing at pre-2008 levels. A fifth of them report that they are ahead of where they were before the recession hit. Perhaps most significantly, a large number of them say that they haven't been chastened by the downturn, and that their risk tolerance is as strong as ever. Only 10 percent say they're on the defensive, and nearly half didn't change their asset allocation over the past three years.

This last item may not be such a good thing. It's always a good idea to periodically revisit your asset allocation to make sure you're not over- or underweighted in any specific area. That becomes even more true after the market upheavals of recent years. But to see so many investors remaining optimistic is good news indeed.

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