5 Stocks You Should Buy in 2021 If You Want To Become a Millionaire
American millionaires are betting on a strong stock market next year, with many expecting double-digit gains, according to CNBC’s Millionaire Survey..
According to the results of the household survey with investment assets of at least $ 1 million, 70% of millionaires expect the S index next year&The P 500 will rise by at least 5%. According to the survey, almost a third of those surveyed expect a capital gain of at least 10% in 2021..
According to the study, while market levels are close or reaching record highs, most millionaires plan to maintain or increase their assets in the next year. Only 9% plan to reduce their shareholdings. This optimism in the face of the coronavirus pandemic and economic uncertainty could be a strong tailwind for the market, given that millionaires own more than 85% of individual shares..
«I expected to see more of them planning to exit the market at these levels.», – said George Walker (George Walper), President of Spectrem Group, a research and consulting firm. «They’ve clearly adjusted to volatility».
Half of the millionaires surveyed expect their personal wealth to increase in the next year, and another 40% said they expect it to remain the same..
Millionaires’ views of the biggest financial risks next year depend more on political party membership than on wealth. Republican millionaires called taxes the biggest risk to their wealth in 2021, while Democratic millionaires called the coronavirus the biggest risk next year.
Fewer than a third of millionaires say the economy will be weaker next year, and most say interest rates will stay the same, which will also help stocks. Their brilliant prospects are another sign of a K-shaped recovery, with middle- and low-income people and small businesses still struggling, while high-income workers and investors continue to see improvements..
Stocks are a favorite investment category for millionaires next year, with 44% planning to add stocks to their portfolios. When asked which market sectors they plan to send more money to in 2021, first place took over technology, followed by healthcare and finance.
«Considering everything that happens around us, they are optimistic, – said Wolper.. «It’s a vaccine and a hope of discovery».
The survey for CNBC was prepared and conducted by Spectrem Group. In November, 750 participants were surveyed with investment assets of $ 1 million or more.