Just over one-third of the portfolio of a high net worth individual in North America is invested in stocks, even though the S&P 500 is up almost 210 percent since its March 2009 low, a new study said. Defined as one with at least $1 million in investable assets, not including a primary residence, RBC (RY) Wealth Management and Capgemini’s 2015 World Wealth Report found these wealthy individuals directed 24 percent of their portfolios towards cash. Some 18 percent of their portfolio was invested in fixed income, while 12 percent was allocated towards alternative investments. ‘One of the findings we’ve seen during the last few years when we’ve done this study is that we see high levels of cash for high net worth individuals,’ said Bill Sullivan, head of market intelligence at Capgemini Financial Services. ‘They’re using that cash for lifestyle needs and to protect against markets volatility.’
More from Emerging Markets
Investors Eye Emerging Market Options ex-China on '6/4' Anniversary
The Tiananmen Square memorial vigil has been blocked in Hong Kong, as investors consider again how much dissent is allowed by the Chinese Communist Party even on the economic front.
Biden Promises U.S. Military Will Defend Taiwan if Attacked
Surprising even his own staff, the U.S. president overshadowed the launch of the Indo-Pacific Economic Framework for Prosperity.
Here Are Ways to Gain Emerging Market Exposure While Sidestepping China Risk
If you'd prefer to avoid the headline risk that comes with investing in China, here are a couple ETFs to consider.
Upbeat Indonesia Becomes Asia's Investment Alternative as China's Prospects Sour
Southeast Asia's largest economy is going strong and offers a contrast to lockdown-battered China.
I'm Betting on Latin America and This ETF for the Balance of 2022
Let's examine why investing in South and Central America as U.S. companies 'reshore' could be the next big thing -- and let's explore several funds to consider.
Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation.
If you have questions, please contact us here.