In other words, One Percenters used to save less, and invest more. Now they’re “basically stuffing money under the mattress,” said Jim Taylor, vice chairman of Harrison Group.
That also means they’re spending less – on everything from traditional luxury to second homes. Fully 82 percent said they would spend more if they had more confidence in the future.
“This has resulted in people managing their risk to a ‘no loss’ position rather a ‘real gains’ position,” Taylor said. “That’s not the great tradition of American investing.”
One respondent in the study said “My savings rate has gone up and I’m not spending, which I realize is bad for the economy ... but I like having a wide moat around me so that nothing can bother me.”
The wealthy aren’t just building financial moats, they’re also building psychological moats. The Occupy movement, media coverage of inequality and the Obama campaign’s “you didn’t build it” attacks have all made the wealthy fearful of any outward signs of success.Page 2 of 4 | Prev Page | Next Page