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Billionaire plans to cut vacation spending due to inflation

A CNBC survey found that American billionaires are cutting back on vacation spending and becoming more budget conscious as a result of inflation.

According to the CNBC Millionaire Survey, 80% of millionaire respondents (with $1 million or more in investable assets) said they plan to cut back on spending this holiday season due to inflation. The millennial billionaire is most likely to cut back on spending, with 100% saying they plan to cut back on spending, as opposed to his 78% of baby boomers.

When asked about how they are coping with inflation, a majority (52%) of billionaires say they are “more price conscious” when shopping, and a third are out at restaurants​ I answered that I ate less.

George Walper, president of Spectrem Group, which runs millionaire surveys on CNBC, said:

walmart Chief Financial Officer John David Rainey said in November that nearly three-quarters of the company’s grocery market share in the quarter ending Oct. 31 came from shoppers earning more than $100,000. , suggesting that even wealthy shoppers are looking for the lowest prices.

Retailers catering to wealthier customers—like lululemon When RH — It has also recently lowered its guidance and sales expectations, showing early signs of weakness at the top.

While inflation is impacting spending, billionaires are divided over inflation-driven changes in their investment portfolios. When asked about changing their portfolio due to inflation, 29% reported making changes, while another 11% said they were planning to make changes. Nearly a third (30%) said they “may or may not” make changes, and 31% said they were not planning to make changes.

Wolper said billionaire investors I am keenly aware of the impact of rising interest rates on investment I am not sure what specific actions to take as I need to shift my portfolio.

“They don’t know where to change,” he said. “People don’t try to sell their time.”

Millionaires also expect inflation to remain high through 2023. When asked how long they expect the current inflation rate of about 7% year-on-year to last, most respondents said at least a year, with 12% saying he said he would two to five years. . .

Still, billionaires generally believe in the Federal Reserve’s ability to keep inflation down. Most respondents (58%) said they were confident or “very confident” in her Fed’s ability to manage rising inflation. Only 37% said they were “not at all confident”.

But trust in the Fed varies greatly by age and political party. A majority of millennial billionaires (55%) said they “extremely trust” their Fed, compared to just 5% of baby boomers. Walper says the disparity may be due to his 1970s baby boomer recollections of how the Federal Reserve struggled to control runaway inflation for years. .

“Millennials have never experienced inflation and interest rate levels like this,” he said.

Democrats also get comfort from the Fed. More than 80% of Democratic billionaires say they are “confident” or “very confident” in central banks, compared to 56% of Republican billionaires who say they are “not at all confident.” rice field.

The CNBC Millionaire Survey was conducted online in November. A total of 761 respondents representing financial decision makers in their households were eligible for the survey. The survey is conducted twice a year, in spring and autumn.

Millionaires see stocks as the biggest threat to their wealth

https://www.cnbc.com/2022/12/19/millionaires-plan-to-cut-their-holiday-spending-due-to-inflation-.html Billionaire plans to cut vacation spending due to inflation

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