The rich getting richer? Not in this market.
Posted
Dec 03 2008, 11:56 AM
by
Kim Peterson
Rating:
Aw, why all the sad faces on millionaires these days? Reuters reports that the investment outlook from U.S. millionaires is now the gloomiest on record.
The "millionaire investor index" by Spectrum Group has fallen for a fourth-straight month and is bearish for the first time ever. The index has fallen a record 15 points from October to minus 39. Any reading below minus 31 is considered bearish.
Rich investors are getting dinged as corporate bonuses are slashed and stock prices decline, said researchers. Their confidence has been hit by the tumbling real estate market, rising unemployment and the problems in the auto industry.
They're changing their investing strategies as well, fleeing from traditional paths like mutual funds and real estate. Now, more of them are hoarding cash and waiting for things to settle.
We've seen some of the country's richest investors get taken down a notch or two lately. Donald Trump's casinos can't pay their bills. Sumner Redstone lost $600 million on just one company. The Ford family fortune has been mostly destroyed.