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Return to normal?

By Judy Martel · Bankrate.com
Friday, July 15, 2011
Posted: 4 pm ET

The overwhelming majority (85 percent) of wealthy individuals in a recent survey say returns on their investments in 2010 met or exceeded their expectations and they expect long-term returns of 8 percent in 2011.

"In this statistic, at least, families seem to be expecting a return to normalcy," according to David Lincoln, director of research of the Family Office Exchange, or FOX, which conducted the survey. Over the past 20 years, the FOX surveys of wealthy advisers have shown average long-term target returns of 7 percent to 8 percent.

Moreover, the survey reports that last year's strong investment performance has boosted confidence among the wealthy in both the market and the economy. But that doesn't mean they've forgotten the recession. Families remain worried about the potential for future capital losses, liquidity and economic risks.

Stock market performance has been climbing -- as of today the Dow Jones Industrial Average is up 7.43 percent and the Standard & Poor's 500 index is up 4.23 percent -- but light trading has ensured its volatility. Plenty of investors are taking a wait-and-see attitude.

Do you share the optimism of the wealthy?

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1 Comment
Anonymous
August 13, 2011 at 2:05 am

How can you take them seriously? Return to normal? They obviously missed this one big time. Can we get a more reliable source than Family Office Exchange next time?