Spending Plans Unchanged
Despite fears of an economic downturn, 80 per cent of high- and ultra-high net worth Americans plan to spend the same amount or more in 2023 than they did in 2022, says a study from Clarfeld | Citizens Private Wealth. Respondents indicated they are most likely to allocate additional resources to travel (51 per cent), their businesses and/or franchises (13 per cent), and real estate (10 per cent) in the new year. Additionally, 87 per cent believe the U.S. is currently in, or will soon enter, a recession. Respondents cited inflation (31 per cent), market volatility (27 per cent), and rising interest rates (11 per cent) as factors that will have the greatest negative impact on their financial portfolios. Most respondents (81 per cent) plan to make changes to their portfolio allocations in 2023, increasing and decreasing allocations to meet their goals. The three asset classes where respondents plan to increase their investments the most include equities (41 per cent), fixed income (37 per cent), and cash (29 per cent).