Barron's cover story this week looked at what wealthy investors are doing in their portfolios today based on the advice of their investment managers. This quote gives a good idea of what the entire article is about.
Back in May, U.S. Trust, the private-banking arm of Bank of America, released a study of 711 folks with more than $3 million in investable assets; 60% of the respondents said that asset growth was a higher priority than asset preservation.
This is pretty much what I was talking about in last night's post in the part about capital preservation. The wealthy are of course not immune to the same investing successes and failures that anyone else endures.
The sentiment expressed in the quote is evidence of complacency and having forgotten what past market implosions felt like. In general terms whenever the next large decline comes there will be many investors who learn, after the drop, that they had too much in risky assets than they should have. They will then in turn panic sell after the large decline.
This behavior repeats over and over the quote above seems to be the front end of that chain of events.