Millionaires Added U.S. Stocks in Last Year as Crowd Fled

Fidelity Investments (Photo credit: Wikipedia)

Millionaires added U.S. stocks more than any other asset in the latest year as average investors fled to bonds, according to a survey by Fidelity Investments. Twenty percent of the 1,020 households surveyed said they bought individual domestic equities in the 12 months ended in March, the Boston-based mutual fund firm said. Cash ranked second, with 13 percent saying they added to that asset class. Eleven percent purchased exchange-traded funds, and 10 percent each added individual U.S. bonds or domestic stock funds.
The broader investing public has sought refuge in fixed income since the global credit crisis sent the Standard & Poor's 500 Index (SPX) down 38 percent in 2008, eight years after the meltdown in technology stocks. U.S. equity mutual funds suffered net withdrawals of $130 billion in the 12 months ended March 31, according to Chicago-based research firm Morningstar Inc. (MORN) Bond funds attracted $191 billion. The S&P 500 gained 9.2 percent this year through yesterday. ... Continue to read.

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