Affluent Investment Choices Turn Away from Cash Toward Stocks

In a new Millionaire Corner survey of investment choices, more Affluent investors edged away from Cash (down 1.2 points to 28.5) to invest in Stocks, which gained 3.7 points to 33.8, the highest level since July, 2011. But there is still market wariness, as the reading of those who chose Not Investing rose 2.6 points to 34.7.

Investment in Real Estate gained .4 points to 9.7, but all other surveyed investment choices posted overall declines. Investment in Bonds saw the sharpest drop, 4.4 points to 10.2. Stock Mutual Funds fell 3 points to 32.9, while Bond Mutual Funds slipped .1 point to 16.8.

Non-Millionaires were much more invested in the market than Millionaire investors. Not Investing, was down 2.2 points to 34.2  and Cash, too, dipped 0.1 point to 29.6.  Investment in Bond Mutual Funds surged 14.2 points to 21.9, as did investment in Stocks (up 11.3 points to 33.5, a level not reached since February 2011) and Stock Mutual Funds (up 8.9 points to 38.4). Real Estate gained 2.6 points to 8.9. Investment in Bonds dropped 4.4 points to 8.

More Millionaires chose Not Investing, up 7.1 points to 35.1. Investment in Cash did drop 2.2 points to 27.6, but all other investment categories posted declines as well. Millionaire investment in Stock Mutual Funds dropped 14.3 points to 27.8 and Bond Mutual Funds fell 13.6 points to 12.1.

Millionaires also invested less in Bonds, down 4.4 points to 12.2 and Stocks, down 3.8 points to 34. Real Estate also saw a decline to 10.4, down 1.8 points from the previous month.