18 Mar, 2014
High-net-worth investor confidence surges to post-crisis
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.
deVere Group 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.
The 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."
He 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.
"Also 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?"
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."
756 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.
In 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.