gunDriller
24th June 2011, 08:52 AM
I thought it was interesting, because it shows the vulnerabilities of the "very rich" (rich, money-wise, that is.)
http://finance.yahoo.com/banking-budgeting/article/113004/portfolios-rich-marketwatch;_ylt=AgcYn3vbT_6TRjzmU74M7FO7YWsA;_ylu =X3oDMTE2N3RuazJtBHBvcwMxMARzZWMDdG9wU3RvcmllcwRzb GsDd2hlcmV0aGVyaWNo?mod=bb-budgeting&sec=topStories&pos=7&asset=&ccode=
"The core of the rich portfolio is surprisingly conservative. The wealthy have, on average, 43% of their holdings in low-risk assets. That's 29% bonds and a thumping 14% in cash. So much for the idea that the more you have, the more risk you can take. (It matters, of course, that the rich are typically much older than the rest of us, and are therefore more likely to be risk-averse for that reason.)
They still only have 33% of their money in equities."
Wow - that's 76% in US $ & stocks.
What happens when the US $ devalues & the stock market collapses ?
I guess they'll be buying fewer trinkets. Gold trimmed leather iPhone case manufacturers, beware.
On the other hand - $10 Million will buy a LOT of Great Value Carrots.
http://finance.yahoo.com/banking-budgeting/article/113004/portfolios-rich-marketwatch;_ylt=AgcYn3vbT_6TRjzmU74M7FO7YWsA;_ylu =X3oDMTE2N3RuazJtBHBvcwMxMARzZWMDdG9wU3RvcmllcwRzb GsDd2hlcmV0aGVyaWNo?mod=bb-budgeting&sec=topStories&pos=7&asset=&ccode=
"The core of the rich portfolio is surprisingly conservative. The wealthy have, on average, 43% of their holdings in low-risk assets. That's 29% bonds and a thumping 14% in cash. So much for the idea that the more you have, the more risk you can take. (It matters, of course, that the rich are typically much older than the rest of us, and are therefore more likely to be risk-averse for that reason.)
They still only have 33% of their money in equities."
Wow - that's 76% in US $ & stocks.
What happens when the US $ devalues & the stock market collapses ?
I guess they'll be buying fewer trinkets. Gold trimmed leather iPhone case manufacturers, beware.
On the other hand - $10 Million will buy a LOT of Great Value Carrots.