Billionaires are keeping to themselves huge amount of dollars. This is a manifestation that indeed the wealthiest people in the world are still doubtful to invest their money.
Based on the study made by Wealth-X and UBS regarding the Billionaire Census, billionaires around the world are getting hold of dollars to the amount of $600 M at an average. This is even much greater compared to the GDP of Dominica.
According to the study, the said increase is a signal that there are quite a number of billionaires who keep their money on the sideways and wait patiently for the right time to make an investment.
CIO Simon Smiles of Ultra Net Worth said that the families of these billionaires that he has been talking with are asking this question – what to with the cash they have?
He even added that cash holdings is not the thing that billionaires do, even multimillionaires and millionaires are also hoarding cash. This constitute to a total of 20-30% to their net worth.
The reason behind this “billionaires hoarding cash" is that they are traumatized for what had happened during 2009, when the financial crisis broke out. Apart from that these wealthy people even felt that they missed a big opportunity to invest during 2012 and 2013.
To end it, Smiles said that there is a combination of a number of people who have been under-invested on both wide risk assets and equities when they have seen the rallies. They have missed the rallies. As of the moment, things are getting more expensive and it is quite difficult to invest.
What would billionaires do to their money for the next years to come? This would only be evident on their current reaction to the market and how will they manage their money today as well as in the future.
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