If the stock market holds up, the rich will indeed get richer in 2021.
According to the CNBC Millionaire Survey, 70% of households with at least $ 1 million in invested assets expect the S&P 500 to rise by at least 5% in the coming year. Almost a third expect double digit gains. That would be on top of a year that has already seen an increase of almost 14%.
With that in mind, most of the 750 millionaires surveyed will replenish their equity portfolios in the coming months. Only 9% plan to reduce stocks.
George Walper, president of Spectrem Group, the company that conducted the research, said he expected more of them to make plans to exit the market.
“They have clearly adapted to the volatility,” he told CNBC.
In total, half of the gilded couple expect their personal wealth to increase next year, while another 40% expect it to remain the same. “Considering everything that is happening around us, they are optimistic,” said Walper. “It’s the vaccine and the hope of a reopening.”
The bullcase took a bit of a hit on Monday, although the Dow Jones Industrial Average DJIA,
managed to come back from three digit losses earlier in the session. The S&P 500 SPX,
and Nasdaq Composite COMP,
stayed lower.