World's wealthiest families stockpile cash as recession fears grow

[Yo_Mama_Been_Loggin]

Rick Stone, a former partner at Cadwalader, Wickersham & Taft, sees treacherous times ahead for family offices trying to deploy cash.

The head of Stone Family Office said he doubts the bond market will provide any real return over the next decade, that equity markets will suffer a substantial drop and then be flat, and that too much venture capital and private equity money will continue to chase too few opportunities.

“It’s a very hard time for family offices to allocate money,” said Stone, 60, whose initial wealth came from class-action litigation fees.

Stone has a good vantage point on the action, since he runs the bi-monthly meetings of the Palm Beach Investment Research Group, a network of 35 family offices in Palm Beach, Florida. “The areas to invest in are fewer, and there is a lot of money looking for those spaces,” he said.

That view of the markets is shared by many of the 360 global single- and multi-family offices surveyed for the 2019 UBS Global Family Office Report, which was done in conjunction with Campden Research and released Monday. A majority expect the global economy to enter a recession by 2020, with the highest percentage of gloomy respondents in emerging markets. About 42% of family offices around the world are raising cash reserves.

https://www.msn.com/en-us/money/markets/worlds-wealthiest-families-stockpile-cash-as-recession-fears-grow/ar-AAHJFRX?li=BBnbfcN

Even they don't trust the dotard.

[SWBTATTReg]

1. I agree...way too much money chasing after too few investments worth the return. Never...

thought we would be in times such as this, where you get negative returns on your savings (or close to it). Perhaps with the governments' 401/IRA retirement accounts for approximately 20 - 25 years or so, too much cash is sitting on the sidelines now. Government doesn't care how much cash is sitting there...when consumers need early access to this cash, they get to apply a 10% penalty on top of the additional income taxes too.

They (government) moan about less tax revenues, but the reality of it is that they are raking in good dough still, with consumers being undercut by persistently low incomes and returns, thus being forced to draw down on these supposed to be long term savings.

[Wounded Bear]

2. They know the Trump Slump is coming...

and their hoarding of cash actually accelerates the fall.

[ffr]

3. The 1% absolutely cashed in though on Dotard's policies and still are.

American prosperity has up for auction ever since. But like everything, including auctions, there is an end. Will it be a recession or a great recession? Hmmm.