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| Fidelity Survey |
The Glass Is Half Full
03/19/2007
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Many investors plan to increase stock holdings.
Affluent individuals anticipated this
year’s drop in the stock market, but that isn’t stopping them from investing,
according to a study released March 19 by Fidelity Registered Investment Advisor
Group. The study, conducted three months ago, questioned 2,500 individuals with
at least $1 million in investable assets. Judging the state of the economy on a
scale of +100 to –100 (zero being neutral), the combined outlook of the
respondents was at +41. However, when asked about the state of the economy in
the next 12 months, the response was only +6.
“When we conducted this survey three months
ago, coming off a strong market year, we were surprised to see how cautious
millionaires were about the future,” said Emily Chien, senior vice president,
Fidelity Registered Investment Advisor Group. “However, the recent stock market
volatility reminds all of us that past performance is not always an indicator of
future success.”
Despite their lack of optimism for
the coming year, only 6 percent of respondents said they would decrease their
exposure to stocks, while 30 percent said they would add to their stock
portfolios. “While some investors see a stock market or real estate drop as
cause to get out or sit on the sidelines, millionaires may view it as a good
opportunity to buy,” Chien said.
On another topic, 30 percent of the
respondents said they do not use a financial advisor, but 13 percent said they
were considering getting one in the next year. “Millionaires told us that while
they seek control and validation in their investments, they recognize they need
help in managing certain aspects of their finances, such as tax advice and
charitable giving,” said Jim Dario, executive vice president, Fidelity
Registered Investment Advisor Group.
Fidelity Registered Investment Advisor
Group custodies more than $247 billion in assets on behalf of more than 3,500
registered investment advisors, bank trust and third-party administered firms.
Fidelity Investments, with managed assets of $1.4 trillion and custodied assets
of $3 trillion, serves 23 million individuals and institutions and works through
5,500 financial intermediary firms.
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