Wealthy investors demand easy exit in rush to simplicity

[Joanne98]

Source: Reuters

GENEVA (Reuters) - Wealthy investors, stung during the financial crisis by exposure to complex investments, are not returning to exotic vehicles offering high returns as volatility eases, bankers told the Reuters Wealth Management Summit.

Investors are especially insisting on the ability to make a quick exit from the investments they bet on.

"We don't have a demand for products that take months to unwind ... We are moving back to basics," said Enrique Marazuela, chief investment officer at BBVA Patrimonios, the private banking arm of Spain's BBVA.

Especially out of favor is private equity, on account of the illiquidity of the investments.

"Long lockups are very, very difficult to sell right now," said Alexander Classen, head of private wealth management for the EMEA region at Morgan Stanley Smith Barney.


Read more: http://www.reuters.com/article/newsOne/idUSTRE5960YZ20091007

[Turbineguy]

1. It's what I call

"Missionary Position" investing.

[groundloop]

2. Glorified gambling

And Reuters admitted it in the article:

Investors are especially insisting on the ability to make a quick exit from the investments they bet on.

[NashVegas]

3. Banks Probably Didn't Like Those Lawyers Letters Demanding They Produce a Deed

Before foreclosure.

[BumRushDaShow]

4. Private Equity firms will be the death of America. n/t