Ferron Campbell at Rosen Group PWM

The Ultra High Net Worth (UHNW), just like the rest of us, are concerned about current economic conditions and the potential of a recession.

In fact, the ultra-wealthy consider themselves to be conservative investors by nature, due to the fact that they have already amassed their fortune and now want to ensure they do everything to preserve it.

Even with their concerns, however, Tiger 21 members (the premiere network for UHNW individuals and investors) have over 70% of their assets currently held in real estate, public equities, and private equities.

Short-term concern when it comes to the economy is normal - it's why you diversify. Just make sure it's always paired with long-term confidence.

Good news investors - consumer confidence continues to drop.

While that may sound odd, what you’ll see in the graph below is the interesting (and inverse) relationship between consumer confidence peaks/troughs and the subsequent 12-month market return for the S&P 500.

As consumer confidence wanes, consumer demand begins to decelerate; and with decelerated demand, prices are held in check, leading to lower inflation.

So while volatility could certainly continue in the coming weeks, taking confidence in the fact that others lack confidence could very well be a step in the right direction for the prices of goods, services, and of course stocks.

How do the ultra-wealthy deal with soaring inflation, rising interest rates, and a volatile stock market?

As 'The Great One" once said, they skate to where the puck is going, not to where it's been.

Tiger 21 is the premier network for high-net-worth individuals and investors. Their members took the following precautions in anticipation of the current economic environment that has left many investors with more questions than answers.

- Limited equity volatility by having almost 50% of their equity allocation in private equities.

- Limited the risk of rising interest rates via a reduced allocation to fixed income.

- Increased returns and income by making real estate a prominent asset class held in their portfolios.

What Got Us Here Won’t Get Us There! Take 2 minutes to read our latest Investor Insights.

What Got Us Here Won’t Get Us There There is no bigger roadblock on the path to growth than complacency. Continued success can’t be achieved by thinking you can just rest on your laurels; rather, it’s the result of making the necessary adjustments to remain on top.

If your money is not working hard for you, you’re going to have to work that much harder (and longer) for your money.