A recent survey conducted by Morgan Stanley’s self-governing body Exchange platform E-commerce recently revealed what millionaire investors think about the current state of the stock market, with a large percentage of them responding that they think we’re in a bubble right now.
According to E-commerceAccording to the findings of, nearly 91% of those polled, all of whom have $ 1 million or more in their brokerage accounts with the popular stock trading platform, either believe that we are approaching bubble territory. or the markets are already one.
Meanwhile, despite this view, these wealthy investors continue to be optimistic about the future of the stock Exchangebecause 64% of those who responded to the survey said they were bullish in the market, regardless of the risks associated with investing during a bubble.
Moreover, this risk attitude seems to have increased in the first quarter of the year, as the percentage increased by 9% compared to the fourth quarter of 2020, while their risk tolerance also increased by 16% during the year. fourth quarter 2020. to 24% in a context of heightened optimism about the prospect of a strong economic recovery in the US economy in 2021.
On the other hand, a similar survey conducted by E-commerce among investors with $ 10,000 or more in their brokerage accounts found similar – but less pronounced – opinions on the markets, with 66% of respondents saying they think markets are currently in a bubble – almost 25% lower compared to the richest part of the platform’s investor base.
That said, the same bullish attitude persists among these retail investors, with 57% responding that they stay net long despite the perception that there is currently a distortion in the markets.
Richest e-commerce investors jump on the industry’s spinning cart
According to the survey, a high percentage of high net worth investors are actively modifying their portfolios to respond to the introduction of a vaccine and other interesting events related to the virus, favoring sectors most affected by viruses such as energy, small caps and value stocks while gradually taking profits in the sectors that benefited the most from the health emergency.
In this regard, 32% said they had recently made changes to their portfolio, which resulted in an increase of 6% compared to the results of the previous quarter.
Meanwhile, other popular investment themes during the pandemic, like home shopping, remain attractive to high net worth individuals as they believe some of the changes the pandemic has brought to the way people live, work, and work. entertainers are here to stay.
On this particular topic, the head of E-Trade’s capital management unit, Mike Loewengart, said: As the expectations of the industry are similar, this also reflects the fact that the market is tied to technology and the fact that the world has changed because of Covid ”.
Finally, the platform’s richest investors acknowledged seeing more interesting opportunities abroad, with 36% already taking positions in companies and index outside the United States – a number that is 9% higher than the 27% reported in the previous quarter.
A scenario of a weakening US dollar and seemingly tight valuations in the US could continue to foster this particular appetite for foreign instruments, as investors see greater upside potential and limited downside risk in countries like the United States. ‘Germany and the United Kingdom.