Ultra-wealthy investors were big buyers and sellers of stocks in late March and early April, suggesting that the wild market swings brought on by the coronavirus pandemic have created opportunities for those with ready cash.
Investors with at least $15 million in investible assets were four or five times more likely than other investors to buy and sell stocks between mid-March and the first week of April, according to a survey from Spectrem Group, a wealth research firm.
Fully 37% of rich investors bought stock during the three-week period that included the most recent market bottom on March 23. Nearly half — or 48% — sold stocks during the same period.
By comparison, only 7% of less-wealthy investors — those with $100,000 to $500,000 in investible assets — bought stocks during the three-week period. And only 9% sold stocks, while 80% did not make any changes.
The active trading, and especially the buying, by the wealthy echoes one of the biggest investing lessons of the 2009…