Wealthy families are turning from cash to risky investments: Citi research
While the interest rate cuts by the US Federal Reserve (Fed) are eagerly awaited, the latest research by Citi, one of the largest financial institutions in the world, shows that wealthy families are now also switching to risky assets. It was stated that families are turning to artificial intelligence and stock investments, and that they also say that their expectations for the next year are positive.
The Fed's interest rate cuts and the expectation that it will implement quantitative easing have also led wealthy families to turn from cash to investments. According to a survey conducted by Citi, one of the most important financial institutions in the US and the world, among its family office clients, these offices have now started to turn from cash assets to investment assets.
97% of the 338 family offices that participated in the survey expect their investments to turn positive in the next 12 months.
"Investors are extremely optimistic"
Hannes Hofmann, the head of Citi's global family office management, said on the subject, "Investors are extremely optimistic. We see this in the magnitude of the risks they are taking. They even participate in early investment rounds of companies, which is actually a much riskier investment than later investment rounds,” he said.
It was also noted that family offices are turning to venture capital companies with growth potential, and that they are still investing in this area (AI) despite not using artificial intelligence in their own companies.
“Inflation and the Fed were the biggest obstacles”
On the other hand, it was stated that half of the participants said that the biggest obstacles to their investments were high inflation and the Fed keeping interest rates high.
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