Wealthy less optimistic about economy

Pessimism toward the U.S. economy — particularly concerning the near future — is rapidly growing among America’s wealthy, according to the PNC Wealth and Values Survey released Wednesday.

“Only 10% of respondents are optimistic about the U.S. economy,” the annual survey said. “Nearly half characterize the U.S. financial system as ‘broken.'”

In addition, the survey indicates that 76% of America’s affluent are concerned with the U.S. economy specifically over the next six months, a sharp increase from 57% last year.

“The survey captures the anxiety and frustration of the economic and political environment that we are in,” said Thomas P. Melcher, executive VP and managing director of Hawthorn, a division of PNC Wealth Management.

“These results clearly tell us wealthy investors are looking for more positive news to get them back on a more confident path.”

However, the study reports that most of the high-net-worth individuals surveyed have not been hurt by the struggling economy – only 20% of respondents claim their net worth has declined over the past five years and 45% have seen growth.

0:00 / 1:46 ‘I’ve given up thinking about money’

This may be why — despite overall pessimism — 81% of those surveyed remain confident that they will maintain or grow their assets in the long term.

“The bottom line remains: investors should look to the long-term horizon and determine their own risk tolerance,” according to Melcher.  To top of page


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