A version of this article appeared for the first time in Inside Wealth Newsletter of CNBC with Robert Frank, a weekly guide to the investor and consumer with high shuttle. Register to receive future editions, directly in your reception box. Rich investors have made the best exchange in last week – doing nothing. While many hedge funds and institutions sold last week, rich individual investors were largely sits tight or even a little purchase. Interviews with several senior wealth management executives suggest that unlike accidents in 2020 or 2008, high-traffic investors felt less pressure for sale in last week. Some started buying Friday afternoon. And many have used lower prices as an opportunity to harvest tax loss and inheritance planning. Here is what the rich advisers say that their customers respond to the roller coaster mountains. John Mathews, head of private wealth management for America at UBS like most Americans, wealthy investors feel a wide range of market emotions and political disorders. According to Mathews, they shape their economic prospects and their investment impulses. “Our job is to remove the emotion and try to set levels,” said Mathews. “Most of the time, we are psychologists.” This helped customers avoid making large trades or financial decisions depending on the feeling rather than logic. Mathews said many UBS customers had started to cut their stocks and “de-rizer” in January. While the markets soared in the first two months of the year in the hope of the new Trump administration, many rich sold and added money. Their large cash cushion helped them keep them quieter during last week’s market turbulence and financed subsequent purchasing opportunities. “There is a lot of dry powder on the touch at the moment,” he said. “Some of the truly rich customers thought (in January),” I made a lot of money, it was easy for two years in a row and everything worked exactly how we wanted. But in 2025, we will start to see different things appear, so why not take profits now? “” “Says of customers.” Friday afternoon, we saw a lot of purchase, “he said.” Customers asked if they were to buy individual actions that were punished that they always wanted to enter, or simply go ahead and buy the indices. “For the most part, wealthy customers have stopped negotiating, waiting for more clarity on policies and markets. Volatil on a daily basis but still faces challenges with a lack of stock market and liquidity. “The question is to go out,” said Mathews. Our richer customers have time horizons of 10 or 15 years to recover their money, so they are not as worried. “Gold is another major theme among the rich investors. Although it has come out of its peaks in last week, gold was considered a safe refuge before even the week’s market giations.” We receive many questions about gold “, said Mathews.” A piece of gold as a hedge at the moment. “Mathews said that a client has summarized the broader investors’ dilemma this week with a real estate analogy:” He said: “It is as if I wanted to buy a property that had been $ 10 million and that it goes to $ 8 million. So, that I do, and I still like it.” Trois PS ” – don’t prepare it In planning. These so-called “portfolio reserves” can provide cash expenses when they need daily liquidity. “We have always told them to plan volatility, which is inevitable,” she said. “They can withdraw from these risk assets to finance their lifestyle.” Lucina said her customers had not made a big movements to buy last week. But she said that some customers who had just sold their companies and excess liquidity began to put part of the money on the market. “Some of them are starting to deploy it in stocks,” she said. The main advice Northern Trust gave customers during last week is to engage in inheritance and fiscal planning, she said. The market slide has created three main planning opportunities. First, the drop in asset prices makes the fiducies of rent preserved, or grats, more attractive. Many customers created or “freeze” grats while the actions were underway to create tax savings when the wealth will be transferred to family members. She also said that richer customers made Roth conversions or transfer funds from a retirement account before tax to a Roth IRA. Conversion on the stockings allows investors to pay taxes on lower assessments and to cover the risk of higher tax rate in the future. Finally, she said, customers collect the loss of tax, or sold their losers and used tax losses to compensate for investment gains later in the year. “What we have seen is that when we were able to turn more conversation to planning opportunities, people feel more in control,” said Lucina. Matthew Fleissig, CEO of Pathstone “We are less afraid of our customers at the moment and more,” should we buy? “” Said Fleissig. Fleissig said that the levels of fear of its customers did not feel anything like 2000, 2008 or 2020. Family Office customers, or those who have 100 million dollars or more, “superimposed” on the market and the purchase. Customers were also interested in structured products, which can offer downward protection but a solid rise. “In moments like these, it is our ability to find asymmetrical opportunities, such as opportunities in private markets or structured products for which investors turn us,” he said. A warning: private credit. Rich investors and family offices have deposited in private credit in recent years, which has led to a flow of capital of the pursuit of agreements with less compliance for risks or yields. “I think a lot of private credit offers are extremely light,” said Fleissig. Dmitriy Katsnelson, a chief office for the assistant investment of Wealthspire Katsnelson noted that rich investors tend to have more money at the end of the first quarter for tax payments. This year, the money is tight in addition to put them in the buffer of the shares and loss of bonds. “This moment was useful,” said Katsnelson. “And people are asking if it’s a good time to start buying and becoming more aggressive.” For the most part, investors through the wealth spectrum avoid major changes in their portfolio, he said. However, small investors, those who have $ 2 million or $ 3 million, and those close to retirement felt volatility than ultra-rich customers. The latter cohort has more investments in alternatives, such as investment capital and direct transactions, which are not a price daily. “Mainly people have evacuated,” said Katsnelson. “They have a direct exhibition and we are here to listen.”
People pass in front of the New York Stock Exchange (NYSE) in New York. (Photo of Spencer Platt / Getty Images)
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A version of this article appeared for the first time in Inside Wealth Newsletter of CNBC with Robert Frank, a weekly guide to the investor and consumer with high shuttle. Register To receive future editions, directly in your reception box.
Rich investors have made the best exchange in last week – doing nothing.
