Millionaire investors stick with this market: Many are buying

Posted: 5 May 2022 4:35 pm
BusinessManTravellingAboardAPrivateJet_GettyImages_1800x1000 (1)

A UBS survey of millionaire investors and business owners finds they recognize the risks shaking the market but are optimistic just a year out. In fact, a fourth of them would invest more.

When the going gets rough for the market — and it’s rough today — the well-to-do don’t sell out; in fact they often buy more.
That truism is reinforced by the May investor survey from UBS of 900 investors with at least $1 million in investable assets and 500 business owners generating $1 million or more in revenue each year.
Like most everyday investors, they are worried about political risks, the Ukraine war and inflation, and nearly as worried about the national debt and possible tax increases.

What wealthy investors are doing

So how would they invest if the market continues to fall — as it’s doing today, in what may be the worst market day so far in this rough year?

  • 30% said they would shift money between sectors, something the market has already seen in a broad move from growth areas like tech to value stocks.
  • 25% would stand pat, making no changes.
  • 26% would add to their investments
  • And only 19% would decrease what they have invested.

The survey also found 58% optimistic on the market and the economy over the next 12 months, and those numbers were rising.

Timing the market is the big risk

The key may be remembering that investing is a long-term project, and the market goes up over time. It can also go down — way down — for long periods, of course.
But the data suggests it’s best to ride things out than leave the market and try to jump back in at the right time. Missing only a few of the market’s best days can dramatically reduce your results.

A study from Bank of America last year, for example, found that while the market in the very rough decade ending in 2020 returned 18%, you’d have lost 33% if you were out of the market on the 10 best days. One decade earlier, the market returned 190%; miss the best 10 days, and your return shrank to 95%.
That’s why most investment advisors would likely tell you to stick to your strategy, perhaps move some money around, but stay invested. Even the pros with supercomputers don’t have much luck timing the market.

Ready to open an account or considering a new broker? Find the best online brokers for your needs. Or check out fees and features in our comparison table to find a better deal today.

Paid non-client promotion. Finder does not invest money with providers on this page. If a brand is a referral partner, we're paid when you click or tap through to, open an account with or provide your contact information to the provider. Partnerships are not a recommendation for you to invest with any one company. Learn more about how we make money.

Finder is not an adviser or brokerage service. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. All editorial opinions are our own.

Ask an Expert provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site