Today the PNC Wealth Management group in Philadelphia, member of PNC Financial Services Group (NYSE:PNC) headquartered in Pittsburgh, released their wealth and values survey results which suggest decreased investor confidence and cloudy outlook for economy. The online survey was conducted at a national level and included 923 adults (18 and over) with over $500,000 in investable assets and minimum annual income of $150,000.
Key findings of the survey include:
-Three of four wealthy investors say government needs to change way it operates
-Almost half are less optimistic on economy after shutdown and near default
-Almost two-thirds say the shutdown will negatively affect the economy
-Two-thirds (67 percent) are at least somewhat worried about healthcare costs over their lifetime and 43 percent are concerned that healthcare costs will continue to increase and not be affordable.
-Three industry sectors perceived by affluent investors as offering the greatest opportunities for gain over the coming year: technology was chosen by 59 percent, followed by healthcare with 50 percent, energy/utilities rank third with 42 percent and financials at 32 percent, up from 22 percent a year ago.
-More than half (53 percent) report that they will keep their exposure to stocks the same as 2013, with four in 10 (39 percent) saying they will invest more in stocks in 2014.
"We consistently advise our clients to add equity exposure when uncertainty is high and to reduce exposure when confidence is extremely high," said Thomas P. Melcher, executive vice president and managing director of Hawthorn, the family office unit of PNC Wealth Management. "We can clearly see from the survey that investor confidence was hurt by the shutdown, but we also see increased sophistication as evidenced by their intention to stay the course."
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Check out the attached video for economic impact from the government shutdown:
"Another day, another $160 million. That's how much the economy is losing every day on average, thanks to the government shutdown, according to data from global markets research firm IHS cited by Bloomberg. Closed national parks, a semi-spooked stock"