• Wealth Management

Investors are Upbeat…but on the Lookout

Morgan Stanley Wealth Management’s semi-annual Investor Pulse Poll discovers that investors are cautiously optimistic about the global economy—but wary of an interest rate hike.

Concern over an interest rate hike and a cautious optimism about the global economy were two key findings of Morgan Stanley Wealth Management’s semi-annual Investor Pulse Poll, which surveys a national sample of high-net-worth (HNW) investors aged 25 to 75 with investable assets of at least $100,000. About one third of respondents reported investable assets of $1 million or more.

Investors are expecting an interest rate hike,
but no consensus on whether a rate hike is a good thing.

Report some concern that current rates are creating a "consumer assets bubble"
Expect the Federal Reserve to raise rates between now and mid-2016

HOWEVER...
of high-net-worth investors are not taking any action on their assets, in spite of an expected interest rate hike.

Investors are cautiously optimistic about the economic outlook
and the future of their portfolios...

High-net-worth investors continue to have a positive view of the global economy over the next 12 months.

76%
believe the global economy will be the same or better.
78%
believe the US economy will be the same or better.
85%
believe their local economy will be the same or better.
92%
expect their portfolios to stay constant or improve in the coming year.
34%
Predict improvements in their portfolios.


However, 54% of HNW investors feel there will be another recession within the next five years.

Many High-Net-Worth investors have no plans for increasing international investments in the near future...

Currently own international investments.
of millionaires are more likely to say they own international investments.
Are likely to invest internationally in the next six months.
of HNW investors (ages 25 to 54) are likely to add new money to international investments in the coming months.

Overall, Investors feel Financial Advisors can help them most with...

Providing guidance on asset allocation
89%
Clearly communicating how assets can contribute to retirement income stream
86%
Analyzing the economy and markets
83%
Suggesting new investment ideas
80%

Additionally, the global and economic challenges that worry investors most are…

91%
Health Care
Costs
83%
Terror Attacks
79%
Social Security
Solvency
76%
War
68%
Trade
Deficits
66%
Water
Shortages

Of the 66% of High-Net-Worth investors who are worried about global water shortages...

The shortage will become more of a problem in 10 years.
Water could be a bigger issue than the demand for oil.
Shortages will lead to more international conflicts.
As might be expected, HNW investors living in the Los Angeles (37%) and San Francisco (39%) markets are much more likely to report being affected by water shortages “a lot.”

Investors also believe that investment
in new forms of water access may be worthwhile.

44% Water re-use/treatment
39% Desalination
38% Hydroelectric power
21% Water bonds
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