Do the rich really get better investment results? CNBC’s senior economic reporter Steve Liesman joined Bill Griffeth on “Power Lunch” this afternoon with a few tips on how to invest like the rich.
Do more research: According to Liesman, one way to invest like the rich is to do more productive research. Often times, the rich have more manager selections and the opportunity to find better managers.
Don’t act with the crowd: Obviously when it comes to investing, the rich have more of a cushion and there’s less forced selling, because they’re able to hold out during downturns. Liesman warns against acting with the crowd and says to avoid panic selling.”
CNBC’s exclusive “Wealth in America” poll found that Americans are optimistic about the future. Of those Americans who own stocks, 60% expect the value of their portfolios to increase, while only 8% believe a big drop in the market is a serious concern.