Property accounts for more than half of investments of rich … 60561.html

Not to worry, the market will balance out the portfolios XX

Ooops, mind the glee there YM.

What it does show is that many have doubled up with their exceptional tiger gains. The pot of gold… isn’t.

Where’s the NAMA for ordinary rich people?

So much for diversification. Throwing more than half your portfolio into such an illiquid asset class is exactly what you shouldn’t do.

I wonder who was advising these high net worth people?

Some days for no apparent reason I feel a warm glow of contentment…

It’s one and the same, no?

Erm, what’s the difference between high net worth and low net worth?

Beats having them in bank shares.

HNW individuals are defined by the US SEC as having more than $1m in investible assets.

Depends on the bank. For UK and Irish banks, I would agree.

However, even for those banks, the investor had many months to reduce exposure when the market was obviously turning. All it took was a call to a broker. For your apartments in Leitrim however…

“er…hello…Is that an Estate Agent?..Yes, I’d like to reduce my exposure by 10%…Could I just sell a bedroom?..Yes, and do it right now at the market price please”

I don’t have a lot of sympathy for wealthy types who lost money on property. Obviously wealth was just passing through them in the process of being transferred somewhere else. They are not suitable vessels to retain wealth long term because they lack a deeper understanding of how markets work. I hope they enjoyed it while they had it.

That said, I do have sympathy with prudent well-run retailers who are suffering because the stupid dumb rich are now afraid to spend anything at all because the idiots put all their eggs in the one basket.

All the worth in between thats liquid

I presume the latter net is made of nylon, and the former made of platinum wire.

“net” investible assets. You are hardly rich if you have debts of $1m as well.

So what do they HAVE now ?

If they are so dependent on the ‘stupid dumb rich’, maybe they are not so prudent or well-run.

Would that be Mortons-type stores you’re talking about the edge? It’s tough on a store that bases its business around being walked to (largely) when the catchment area goes bust as one…