Illustration photo – Money – banknotes – dollars – crown.
Prague – Last year, more than half of the Czech dollar millionaires managed to increase the value of their assets despite the collapse of the financial markets. Almost a third of the wealthy did not claim any gains or losses. Less than a fifth reported a loss. Millionaires overcome inflation thanks to long-term investments, they believe in stocks and bonds. This follows from the results of the 12th annual survey by J&T Bank among 192 Czechs with disposable assets of at least one million dollars (CZK 22.2 million). According to estimates, there are over 30,000 dollar millionaires in the Czech Republic.
Although the past year was marked by concerns about the disruption of economic and security stability, according to him, the Czech dollar millionaires are expecting a reversal of the current economic development. They perceive imminent risks and fear the impact of adverse effects on households and the state, however, they are confident in the field of investments, the authors of the survey said.
The young generation had the upper hand over the more experienced ones during the last year. A third of the younger respondents became richer by more than ten percent, the over 50s most often increased the value of their wealth by two to nine percent, according to the survey.
“Last year was the weakest in terms of preserving the value of wealth and potential investment returns. The value of wealth fell for 18 percent of Czech dollar millionaires, which is the highest percentage recorded in our survey so far. At the same time, the growth of the wealth of roughly half of the dollar millionaires shows that a well-thought-out investment strategy will help with the significant deterioration of the economic situation and the increased volatility that we observed on the stock markets last year,” said Petr Sklenář, J&T Bank's chief economist.
Almost half of the respondents expect their wealth to grow by up to nine percent this year as well. Dollar millionaires expect the biggest appreciation this year from stocks that are capable of delivering the highest return of all major financial asset classes over the long term. He sees a hidden opportunity in bonds. Cryptocurrency fever is considered by dollar millionaires to have survived, and confidence in digital assets among respondents has seen a sharp decline.
At the same time, the popularity of investment real estate is declining due to lower potential returns, but for them, real estate remains an attractive store of value and, above all, peace of mind.
“According to those interviewed, own business and income from it will contribute to wealth this year, and investment instruments will mainly include foreign shares, real estate, bonds or private equity investments. We can observe that dollar millionaires now have their portfolios compared to the situation ten years ago they diversify to a greater extent, better balance risks and also understand the long-term factor,” said J&T Banka's sales director Alena Tkáčová.
The J&T Banka Wealth Report survey was carried out at the end of 2022 in cooperation with the research by the Perfect Crowd agency. Its goal was to map the investment behavior and lifestyle of Czech and Slovak dollar millionaires.