SOURCE: Spectrem Group

February 22, 2011 08:00 ET

Wealthiest Americans, Sitting on Sizable Cash Balances, Eyeing Equity Markets in 2011

More Than Half Likely to Purchase Stocks in Coming Year; Additional Insights Available on Spectrem's Millionaire Corner Website

CHICAGO, IL--(Marketwire - February 22, 2011) - America's wealthiest investors are eyeing a return to the equity markets in 2011.

More than half (52%) of U.S. households with a net worth between $5 million and $25 million, not including primary residence (NIPR), say they are likely to purchase equities over the next 12 months, according to "Ultra High Net Worth Investor 2010," a new report released today by Spectrem Group.

This makes equities, which include individual stocks and stock mutual funds, the most popular investment choice for Ultra High Net Worth investors in 2011, surpassing other options such as cash (35%), international investments (33%) and fixed income products (31%).

"After pulling away from equities during the recession, America's wealthiest investors are looking to jump back into stock investing. With more than half of the nation's wealthiest investors likely to buy equities over the course of 2011 and given the sizable cash balances this group has amassed, stock market investors across the board may have even more reason to look forward to 2011," said George H. Walper, Jr., President of Spectrem Group.

Ultra High Net Worth households had average cash balances, including money market funds, checking, savings, Treasury Bills and CDs, of $659,000 at the end of 2010. This represented 10% of their total investable assets.

Additional insights from the study are available on Spectrem's newly launched Spectrem's Millionaire Corner website (www.millionairecorner.com). They include:

The Spectrem report "Ultra High Net Worth Investor 2010" is based on a survey of 516 households with a net worth of $5 million to $25 million, not including primary residence (NIPR), conducted in November of 2010. Its data has a margin of error of plus or minus 4.3 percentage points.

About Spectrem's Millionaire Corner
Spectrem's Millionaire Corner website (www.millionairecorner.com) is a powerful source for up-to-the-minute news and information for investors, about investors designed to fuel financial growth. It incorporates Spectrem Group research as well as outside information. In the future, the site will offer financial advisor referrals.

About Spectrem Group
Spectrem Group is a strategic consulting firm specializing in the affluent and retirement markets, integrating proprietary research with expertise in building business, marketing and M&A strategies. Its professionals have held senior management positions at leading global companies. 

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