Tuesday, August 16, 2011

The Superrich Pull Back

An article in yesterday's Wall Street Journal pointed out that the extremely wealthy among us have reacted to the recent economic downturn with a great deal of timidity. Those investors with $30 million on more in investable assets dropped their equity assets from just under 40 percent of their holdings in 2007 to less than 20 percent in 2008, and those figures have yet to rebound.

But this strategy has not proved to be especially lucrative. According to a survey from the Institute for Private Investors, that same group of investors earned a collective return of just 11.3 percent in 2010. In that same year, the S&P 500 returned 13 percent.

Then again, when you have $30 million to invest, even getting back 11.3 percent per year is an awful lot of money.

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