High-net-worth (HNW) investors are generally optimistic about the US economy despite feeling cautious about inflation and global political tensions, according to our ARQ Wealth client survey and other recent data.
Economic Outlook? Increasingly Optimistic
At the midpoint of 2025, high-net-worth investors are showing renewed confidence in the U.S. economy following a turbulent start to the year.
The beginning of 2025 was riddled with uncertainty, stock market volatility, and aggressive trade policies that had investors feeling cautious. However, a strong market rebound in recent months has helped restore confidence and improve overall sentiment.
General High-Net-Worth Investors: HNW investor confidence surged in June and July thanks to a strong rally in equities, according to the Bain & Company Consumer Health Index, a metric that tracks the financial confidence of Americans earning over $100,000 annually. This index now sits above its 12-month average.
ARQ Wealth Clients: Our survey revealed that 80% of clients rated their financial confidence at 7 or higher on a 10-point scale. While this optimism reflects broader economic improvements, we believe our customer-centric approach has played a key role in driving the confidence of our clients. At ARQ Wealth, we prioritize long-term relationships, operate under a transparent, fee-only model, and conduct regular check-ins to ensure alignment with each client’s evolving financial goals.
Current Financial Priorities: Generating Income and Preserving Wealth
How are today’s HNW investors adjusting their priorities, given the improved optimism around the U.S. economy? Here’s what the data says.
General High-Net-Worth Investors: According to the Forbes Research 2025 High Net Worth Survey, 82% of affluent investors currently prioritize income generation. When looking five years down the road, most investors anticipate shifting their focus toward wealth preservation.
ARQ Wealth Clients: Our client survey reflects a similar trend. When asked about their top financial priority over the next five years, 51% of our clients cited wealth preservation, followed by 26% who prioritized retirement readiness, and 13% who focused on investment growth. Among clients under age 59, the leading goals were growing investments and preparing for retirement.
Biggest Concerns: Inflation and Increasing Geopolitical Tension
Even with a more optimistic economic outlook, uncertainty and risk remain top of mind for many investors. Here’s a closer look at the key concerns currently shaping high-net-worth (HNW) financial strategies:
General High-Net-Worth Population: Although the Forbes survey did not list specific concerns, it revealed that 56% of HNW investors are placing greater emphasis on risk management in response to recent economic headwinds. Reflecting this shift, 71% now work with a financial advisor, up from 66% the previous year.
ARQ Wealth Clients: Nearly 60% of our clients identified geopolitical tensions and stock market volatility as their primary concerns. Inflation followed closely behind, with 24% citing it as a significant risk to their financial well-being.
Turning Insights Into Financial Strategy
The financial insights listed in this report are most valuable when applied to a well-rounded, strategic financial plan.
For example, we’ve outlined several planning adjustments that may be appropriate given today’s economic outlook, evolving investor priorities, and prevailing concerns.
Mitigating Capital Gains Tax
Many high-net-worth investors are likely holding significant unrealized gains following the strong rally in equities, making proactive capital gains tax planning more essential than ever. Without a thoughtful strategy in place, selling appreciated assets can trigger substantial tax liabilities that erode overall returns, limit future investment flexibility, and generally reduce your net worth.
To help mitigate the capital gains tax on their investments, investors can consider strategies such as tax-loss harvesting with underperforming assets or even charitable giving to reduce taxable income.
When implemented as part of a comprehensive financial plan, these tactics can help preserve wealth and support your long-term financial goals.
Adjusting Investment Strategies
The recent market rally also presents a timely opportunity to reassess and adjust your portfolio’s asset allocation strategy.
With income generation emerging as a key priority for many investors, now may be an ideal moment to reallocate assets, shifting from equities that have appreciated drastically in recent months to more stable, income-producing assets such as dividend-paying stocks or fixed-income securities that offer reliable cash flow.
Wealth Preservation and Risk Management
A strong market rally can often signal that a correction may be on the horizon, particularly if valuations begin to outpace fundamentals. In this environment, it’s usually wise for investors to place a heightened emphasis on diversification, not only across asset classes, but also across industry sectors and global markets.
Spreading investments across a broader range of opportunities can help mitigate risk, reduce volatility, and better position a portfolio to weather potential downturns while still capturing long-term growth.
Working With a Retirement Planner
While investor sentiment continues to improve, many high-net-worth individuals still have notable concerns, including a potential increase in inflationary and escalating geopolitical tensions.
Partnering with a retirement planner is one of the best ways to prepare and adapt to changes in the economy. A trusted advisor can provide tailored investment strategies, proactive risk management advice, and a range of additional benefits designed to help you stay on track toward your long-term financial goals.
At ARQ Wealth, we specialize in creating personalized financial plans grounded in long-term strategy and supported by ongoing, expert guidance.
Reach out to the ARQ Wealth team or call (480) 214-9572 to help ensure your financial plan is built to thrive in any economic climate.