This is part two of a two-part series.
The Morgan Stanley Wealth Management Investor Pulse Poll results were just announced with some interesting findings. A new poll shows that Denver area investors with at least $100,000 in investable assets are optimistic about the prospects for their portfolios, growth of the Colorado, U.S. and global economies, and their ability to reach their personal financial goals. Additionally, a close look at the millionaires polled (making up a third of respondents) shows some differences in their financial outlook. I’m pleased to report in this column the sentiment of all the polled investors, which was shared in a Morgan Stanley press release issued on April 22.
Real estate viewed as generally positive
In addition to the 64% of Denver investors who sense improvement in their local housing market (higher than 41% nationally), three in ten or more believe real estate will be the best performing asset class over the next three years.
- In an important step for the battered Denver housing market, 64% of Denver investors sense improvement in their local housing market (price appreciation of 10% or more)—versus 41% nationally.
- However, 63% say the timing is good to buy a primary residence (lower than 74% nationally), and 21% say commercial real estate prospects are good (lower than 28% nationally).
- Also, 47% have seen foreclosure problems close to home, similar to 43% nationally.
Millionaires are different
Investors with household assets of $1 million or more are more likely to see improvement in their portfolios from 2012 (74% vs. 48% in lower asset group) and, predictably, are less likely to be concerned about financial issues impacting their personal finances in the long-term, such as:
- Funding a child’s education (23% vs. 50%, total Denver investors);
- Providing financial assistance to older adult relatives (17% vs. 37%);
- Paying off student loan (18% vs. 32%).
- Being a financial burden on children (14% vs. 30%)
Millionaires are also more interested in the oil and gas industry relative to total investors (50% have invested vs. 29%; 45% plan to invest vs. 30%). They are also more bullish on REITs (54% vs. 31%) and commercial real estate (33% vs. 21%).
Financial advice in high demand
Guidance, analysis and clear communications are the leading expectations for financial professionals among the 77% of Denver investors who have one:
- 85% want guidance on their portfolio asset allocation;
- 85% want clear communication on how assets can contribute to a retirement income stream;
- 84% want guidance and resources on changes in the fed tax policy & exemptions;
- 82% want both analysis of the economy and potential portfolio impacts;
- 81% want downside portfolio protection;
- 75% want new investment ideas.
For more about the national poll, read “Denver Investors Show Broad Optimism About the Markets and U.S., Global Economies” [Link to: “Denver Investors Show Broad Optimism About the Markets and U.S., Global Economies” article]
1Survey Methodology: 1,000 US investors, age 25 to 75, with $100,000 or more in investable household financial assets. A third of those interviewed had $1 million or more in household financial assets. Poll conducted Jan. to March, 2013, by GfK Public Affairs and Corporate Communications.
Todd Hauer is a Financial Advisor with the Global Wealth Management Division of Morgan Stanley in Denver. The information contained in this article is not a solicitation to purchase or sell investments. Any information presented is general in nature and not intended to provide individually tailored investment advice. The strategies and/or investments referenced may not be suitable for all investors as the appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives. Investing involves risks and there is always the potential of losing money when you invest. The views expressed herein are those of the author and may not necessarily reflect the views of Morgan Stanley Wealth Management, or its affiliates. Morgan Stanley Smith Barney, LLC, member SIPC.