The wealthy are investing like a market bubble is here, or at least near

[Olde Hornet]

The wealthy are investing like a market bubble is here, or at least near

A majority of millionaire investors say a stock bubble is occurring, but their market risk appetite is still going up, with a shift in portfolio strategy.

www.cnbc.com

If an investor with $1 million or more in the market thinks that a stock bubble is already here — or soon enough one will be coming — what is the correct response? According to a new survey from E-Trade Financial, the answer is to keep investing in stocks, with more emphasis on undervalued sectors of the market.
Only 9% of millionaires surveyed by E-Trade think the market is nowhere near a bubble. The rest of the affluent investor set:

• 16% think we’re “fully in a bubble”
• 46% in “somewhat of a bubble”
• 29% think the market is approaching one

Yet these affluent investors are not running from the market, or parking money in cash. In fact, amid rising bubble fears these same investors say their risk tolerance has increased, significantly, in the first quarter of 2021, and the majority expect stocks to end Q1 with more gains.