World’s Rich Are Hording $10 Trillion in Cash [View All]

[Octafish]

News from the Have-Mores:

World’s Rich Are Hording $10 Trillion in Cash

By Robert Frank
WSJ Blogs
The Wealth Report - Robert Frank looks at the lives and culture of the wealthy.
July 13, 2010, 10:27 AM ET.

How afraid are the wealthy right now?

According to a report from Scorpio Partnership, the world’s high-net-worth investors (with $1 million or more) have an extra $10 trillion lying around that they refuse to turn over to their wealth managers.

Granted, these investors have $16.5 trillion invested with private banks and wealth-management firms–up from $14.5 trillion at the end of 2008, largely reflecting market gains.

But Scorpio, a London consulting firm, says wealthy investors actually have more than $26 trillion that they could be giving the banks and wealth-management firms to manage. “This implies there is approximately $10 trillion of high-net-worth assets that could be advised by banks,” the firm says. “Capturing these assets is the real answer for industry recovery.”

That could take a while. The wealthy were burned so badly in the past three years from bad advice and bad investment decisions that they are unlikely to hand over their extra cash anytime soon. And can you blame them?

CONTINUED...

http://blogs.wsj.com/wealth/2010/07/13/worlds-rich-are-hording-10-trillion-in-cash/

I can't blame them for anything. I hold them guilty.