Wealth investors and advisers believe that short-term investment decision-making has become the norm, reports the World Gold Council.
A survey of high net worth investors, their advisers and third party agents undertaken by the World Gold Council at a recent event on risk management found that short-term considerations are driving investor behaviour.
Among those polled, 76% think short-term investment decision-making has become the norm.
Marcus Grubb, managing director, Investment, said: “In the current unprecedented environment where conventional wisdom on portfolio management does not appear to apply, short term decision making has become the norm as reflected in our poll. With the prospect of continued market uncertainty, the challenge for investors is to develop new strategies to cope with higher levels of ambient risk.”
The survey also reveals the following perspectives on the outlook in the Eurozone, long-term growth and the efficiency of regulation:
– 71% of total respondents agreed that Greece would leave the euro by May 2013, representing a major shift in just a few months.
– 49% of total respondents consider the impact of regulatory developments in the wealth industry necessary, despite being onerous. However a minority of 35%, weighted towards asset / fund managers, thought that it represented more harm than good.
– 45% of total respondents believe European wealth assets will grow in real terms by 2020, compared to 2012.
The debate, entitled “Dazed and Confused? Finding a new compass for Wealth Management”, was chaired by Gillian Tett, US managing editor and assistant editor of the Financial Times. Tett was joined by panellists Roger Bootle, Managing Director of Capital Economics; Andy Brough, Fund Manager, Schroders; Helyette Geman, Professor of Finance at Birkbeck, University of London; and Marcus Grubb, Managing Director, Investment, World Gold Council.