America’s wealthy are showing increased levels of anxiety about the economy and stock market headed into 2020, but overall sentiment from the wealthy remains baseline optimistic. Most millionaires do not expect big things, or the U.S. economy going over a cliff, in the next year, according to the results of the new CNBC Millionaire Survey.
After a recession-less decade and a stock boom for the record books in 2019, the more cautious view from millionaire investors when it comes to their money is not surprising.
Meanwhile, the 54% of millionaires who expect a gain of 5% or more from the S&P 500 in 2020 is down from 65% in the Spring 2019 survey.
The CNBC Millionaire Survey for the Fall 2019 was conducted in November among 700 people with investable assets of $1 million or more.
Political partisanship plays a big role in the survey responses. Among Democrats, 62% think the economy will weaken next year versus only 19% of Republicans. Democrats are far more likely (43%) to say the S&P 500 will suffer a decline; only 15% of Republicans anticipate a stock market decline.
In the November 2015 CNBC Millionaire Survey, the reaction on the economy and investing was similar in direction, but opposite in politics: Democrats felt very optimistic about the next 12 months and Republicans more negative. At the time, the Democrats were in office and Hillary Clinton was leading in the polls. Independents were in the middle in both studies.
Read More: https://www.cnbc.com/2019/12/23/where-the-wealthy-expect-market-economy-to-be-at-end-of-2020.html