Nov 1, 2019

High net worth investors are holding a lot of cash

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Data: UBS Global Wealth Management; Chart: Axios Visuals

High net worth individuals and business owners globally say they're getting more optimistic about the economy, but are still holding a large percentage of their wealth in cash, data from a third quarter UBS Global Wealth Management survey shows.

By the numbers: The survey polled more than 4,600 wealthy investors and entrepreneurs in 18 countries.

  • Wealthy U.S. investors are putting more of their money into instruments like stocks and bonds while holding 21% of holdings in cash.
  • Globally, investors have 27% of holdings in cash, "much higher than the percentage typically recommended," UBS analysts note. Still, 34% say they are shifting more into cash.
  • 53% of respondents expressed optimism on the global economy and 61% on their own region’s economy.

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Recession fears have vanished

Illustration: Aïda Amer/Axios

Money managers are not just bullish about the stock market, they're euphoric about the current and future state of the global economy, data from the Bank of America Merrill Lynch shows.

What's happening: BAML's monthly survey of fund managers from around the world finds investors are all in on the stock market, with global optimism rising by the most in 20 years and expectations of real economic growth jumping by the most in the history of the survey.

Go deeperArrowNov 13, 2019

Businesses are stocking up for an expected downturn

Illustration: Eniola Odetunde/Axios

U.S. companies are holding off on major purchases and investments, paying down debt and stacking up cash as they look to position for an expected economic downturn in 2020.

Why it matters: Firms are trying to protect themselves from a recession, but their spending pullback could weaken the overall economy — and potentially help precipitate the very conditions they fear.

Go deeperArrowNov 8, 2019

America's top 1% has almost as much wealth as middle, upper-middle classes combined

Photo: Phil Ashley/Getty Images

The top 1% of American households have almost as much wealth as the middle- and upper-middle classes combined, reports Bloomberg.

Why it matters: The richer the 1% becomes, the more opportunities they have, per Bloomberg. A large portion of their wealth comes from "huge returns in the stock market in the past decade, to the point that they now control more than half of the equity in the U.S. public and private companies," according to Federal Reserve data.

Go deeperArrowNov 9, 2019