'Property' is the top investment choice among world's affluent; among stocks, technology gets top pick, says Synovate study
31 March 2003
NEW YORK — When it comes to investing their next $100,000, most of the world's affluent consumers would invest in 'property', according to findings from the Global Prestige Study just released by Synovate, a leading global research firm with offices throughout the U.S.
Synovate polled more than 1200 affluent consumers across Brazil, Canada, the
U.S, China, Japan, Singapore, Germany, France, Russia, Spain and the United
Kingdom, reaching at least 100 in each country. The study investigated
investment preferences and assessed brand ownership, prestige and other brand
characteristics in four categories: cars, watches, hotels and liquor.
Respondents were screened for a combination of income, occupation and ownership
of luxury goods and services.
The independent study is being presented at
Synovate's April 10th seminar during the Advertising Research Foundation's 2003
Annual Convention and Research Infoplex at the New York Hilton.
"Property is considered the best investment by the affluent in 10 of the 11 countries we surveyed, most likely because of its long term value and safety as an investment," observes Claire Braverman, senior vice president of Synovate's financial services practice (see Chart 1, PDF 93Kb).
The exception was Japan, where property ranks second behind stocks. "The affluent in Japan prefer stocks over property as their top investment choice - not a surprising finding, given the incredible volatility of their real estate market in the past decade," observes Braverman.
When asked specifically about stock investments, the affluent rank technology stocks in the top two industries for investments in all countries surveyed except Brazil and Russia. For the affluent in those two countries, stocks in mining and natural resources companies were the top preference (see Chart 2, PDF 93Kb).
"The world's affluent still see technology as a top industry for stock investment, despite the burst 'tech bubble'," says Braverman. "Technology remains an important part of the economy in several of the countries we surveyed (e.g. Singapore and Japan). Technology is 'the future' so, as a stock choice, the affluent recognize it as a top option for investment and growth."
Synovate, the market research arm of Aegis Group plc, generates consumer insights that drive competitive marketing solutions. The network provides clients with cohesive global support and a comprehensive suite of research solutions. Synovate employs over 6,000 staff across 62 countries.
For more information on Synovate visit www.synovate.com.