A majority of the ultra-wealthy Americans are seeing the possibility of a recession by 2020 and they are taking steps to prepare themselves now. Many are hoarding cash and others are shifting their portfolios to protect themselves and their wealth when it finally hits the fan.
A UBS survey of 360 global family offices with an average family wealth of $1.2 billion, gave some insight into how the wealthy are treading in the current economic environment. The survey showed that 55% of family offices see a recession by 2020 and in order to mitigate risks and lessen the effects of an economic downturn, 45% of them are already adjusting their portfolios, including shifting to bonds and real estate, while 42% are increasing their cash reserves.
“We are very cautious, even now with the market we don’t feel very comfortable,” said a survey respondent who is a managing partner at a multifamily office in North America, according to CNBC.
An ongoing trade war between the United States and China has deepened fears of a recession, while the so-called yield curve inversion, a bond market phenomenon that’s historically predictive of an economic downturn, also intensified the concerns. Many notable investors and economists including Jeffrey Gundlach and David Rosenberg have recently warned of heightened recession risks.
https://www.shtfplan.com/forecasting/david-rosenberg-even-if-the-fed-cuts-rates-to-0-a-recession-will-hit-in-12-months_09232019
“Who knows what will happen with Brexit, what will happen in the EU, and what will happen between the U.S. and China,” said another survey respondent, a CEO of a single-family office in Europe. “There are so many open questions, and this could have a dramatic impact on the market. In general, we think we have reached our peak,” the respondent added.
To protect your personal wealth, you could begin thinking and acting like the wealthy. It appears that they are looking into the future and preparing for the worse before things can too ugly.
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Smart Preppers are loaded down heavy with PM’s. Been real money for 5000 years, Land /Ground, Guns, Grubs and Guts to defend what is yours.
Ever check the Stats where you live in a grid down disaster zone? Read this.
One in 7 adults in New Orleans has a warrant out for arrest, new data shows
Richard A. Webster, The Washington Post
Published 8:43 pm EDT, Monday, September 23, 2019
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take out the space in http
” 45% of them are already adjusting their portfolios, including shifting to bonds and real estate, while 42% are increasing their cash reserves.”
I’m certainly not rich, but these are my investments, real estate, bonds, and cash, in addition to SHTF preparations. I may have a pound or two of silver coins.
Having said that, being debt free is probably the best investment I ever made.
I’ll be pretty immune to a recession, even a depression. Rich people are just worried about their money. I worry about food, taxes, and keeping my humble lifestyle intact regardless of what happens naturally or man caused.
Bonds are hardly a safe haven right now, and will not be in a crash. While the wealthy may be hunkering down, the average American is spending like it is 1928, and with credit. But hey don’t worry, we have great bankruptcy laws.
Hunkering down with $1.2 billion must be tough. If they lost half their wealth and were down to $600 million they would likely contemplate suicide.
Hey, do you know how much the insurance is on ten McClarens………. God forbid I gotta drop down to some economy Mercedes or BMW……………
Economy Mercedes? Do they make them? Cars all look the same anymore. Went to the junkyard and got a Mercedes logo badge and put it on the wife’s 10 year old sedan.
Fools all the neighbors…
I refuse to drive economy cares like Mercedes or BMWs. I will just drop down to only 9 McClarens !