High-net-worth investor confidence surges to post-crisis high
investor confidence has surged to its highest level since the global
economic crash of 2008, reveals a poll by one of the world’s largest
independent financial advisory organisations.
reports that 57 per cent of those surveyed stated they were feeling
bullish about the investment outlook for the next 12 months. This is an
increase of four percentage points on the 2013 poll.
last time investor confidence levels were higher than this current level
was back in March 2007, when 59 per cent of the deVere Group’s
high-net-worth individuals said they were feeling bullish in the annual
international poll carried out to assess investors’ attitudes to risk
for the year ahead.
The 2014 survey also finds that 77 per
cent of the high-net-worth investors are “committed to investing more
over the 12 months.”
deVere Group founder and chief
executive, Nigel Green, comments: “As this global sentiment survey
concludes, there is a growing sense of optimism amongst high-net-worth
investors. But as ever, high-net-worth individuals should take nothing
for granted. The key for wealth preservation is diversification and the
compounding effect of re-investment as a defence against inflation.”
continues: “The overarching upbeat sentiment is, I suspect, as a result
of the eurozone returning to growth, the U.S. economy performing
strongly even with quantitative easing being tapered, and the UK’s
potential of reaching 3 per cent GDP growth this year, amongst other key
Offering a note of cautionary advice for
high-net-worth investors, who are “typically and with good reason
internationally-minded”, Tom Elliot, the Group’s international
investment strategist, adds: “The eurozone is recovering, yet it remains
unbalanced, as it is led by the ‘core’ northern economies. That said,
we are seeing progress on the structural reforms that the peripheral
southern countries need to make in order to regain competitiveness.
there are valid questions over the nature of the economic recovery in
the U.S. and the UK - is it built too much on a real estate boom, and
not by investment? If so, is the 2000-2008 period repeating itself?
Furthermore, can China succeed in its ambition to deliver steady growth
of 7.5 per cent, faced with so much commercial debt on its books?”
concludes:“Even bearing those points in mind, there’s no doubt that,
overall, the world looks a safer, more ‘normal’ place now for
high-net-worth investors than it did this time last year.”
deVere Group clients based in the UK, the U.S., Hong Kong, the UAE,
Indonesia, Japan, Thailand, India and South Africa, who have investable
assets of more than £1m took part in this year’s poll.
2013, 53 per cent of high-net-worth investors reported they felt
optimistic for the forthcoming 12 months. 49, 44 and 55 per cent per
cent said the same in 2012, 2011 and 2010, respectively.