Millionaires still view the economy as weak, but they are
growing more hopeful about the future growth, according to a recent
survey from Fidelity Investments.
Based on a scale where +100 is the most favorable outlook, zero
is neutral and -100 is the most negative, the 2010 Fidelity
Millionaire Outlook reported that millionaires' view of the economy
in late 2010 rose to -54 from -91 in 2009. The online survey of
more than 1,000 financial decision-makers in U.S. households with
investable assets of at least $1 million was conducted October
When asked about their view of the economy a year down the road,
in late 2011, millionaires expressed more optimism, according to
the survey. Millionaire future outlook is at +37, its highest level
since the survey's inception in 2006, when future outlook was at
+6, according to Fidelity.
"Although millionaires are inherently optimistic, given their
current views of the economy, we were surprised to see millionaires
so optimistic about the future," said Michael R. Durbin, president
of Fidelity Institutional Wealth Services. "Millionaires' outlook
could be seen as a leading indicator of the direction of the
economy, especially since the last time we conducted this survey in
early 2009, they forecasted improvement in all aspects of the U.S.
economy at the beginning of 2010."
The survey also showed that four in ten millionaires do not feel
wealthy, despite having an average of $3.5 million in investable
assets and $379,000 in annual household income. The survey also
showed that millionaires begin to feel wealthy when they reach an
asset level of at least $7.5 million.
Eighty-three percent of respondents remain unfazed by the market
downturn, with 63% not expecting market volatility to become the
new norm, according to the survey. In fact, 43% of millionaires
indicated they were more knowledgeable investors since the market
downturn, with that same percentage indicating they planned to
invest more in the stock market over the next year.
Three-quarters of respondents reported they were concerned about
the impact of potential tax changes on their investments, with 63%
indicating they planned to discuss the tax implications with their
financial advisor, according to the survey. Thirty-six percent
indicated they planned to take greater advantage of tax-free
investments, 25% planned to start or re-evaluate an estate plan and
22% planned to contribute more to tax-deffered retirement
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