The American millionaire bets on a strong stock market next year, with many expecting double-digit gains, according to CNBC’s Millionaire Survey.
A full 70% of millionaires expect the S&P 500 to be up at least 5% next year, according to a household survey with an investment fund of at least $ 1 million. Nearly a third of these pollen expects benefits of at least 10% in 2021, according to the study.
The S&P 500 enters the final weeks of 2020 up nearly 14%.
Despite market levels near or at higher levels, most millionaires plan to maintain or add to their stock holdings next year, according to the study. Only 9% plan to reduce stock ownership. That move despite Covid ‘s pandemic and economic uncertainty could be very strong for the market as a millionaire owns more than 85% of individual stocks.
“I expected to see more of them making plans to get out of the market at those levels,” said George Walper, president of Spectrem Group, a research and consulting firm. “They’ve clearly changed according to the variability.”
Half of the millionaires surveyed expect their personal wealth to rise next year, while another 40% say they expect it to remain as it is.
Millionaire’s views on the biggest financial risks next year will depend more on the ties of political parties than wealth levels. A Republican millionaire said taxes are the biggest threat to their wealth in 2021, while a Democrat millionaire said the virus is the biggest threat.
Less than a third of millionaires say the economy will weaken next year, and most say interest rates will remain the same, which will help stocks. Their clear vision is yet another sign of the K-shape overcoming where middle and low earners and small businesses are still struggling while high-income workers and investors are struggling. continue to see improvements.
Shares are the investment sector’s favorite for a millionaire next year, with 44% planning to add stocks. When asked which market segments they plan to invest more in in 2021, technology was ranked first, followed by healthcare and finance.
“With what’s going on around us, they’re optimistic,” Walper said. “It’s the vaccine and the hope for reopening.”
Spectrem Group conducted the study for CNBC. It achieved 750 partners with non-volatile assets of $ 1 million or more in November.