NEW YORK-Tuesday 23 July 2019 [ AETOS Wire ]
(BUSINESS WIRE)--
US high net worth individuals and business owners are expressing
growing intentions to invest as US markets continue to hit record highs
in 2019, according to UBS Global Wealth Management's new quarterly
Investor Sentiment survey.
The
survey, which polled more than 3,800 wealthy investors and
entrepreneurs in 17 countries, also shows US investors remain positive
on the U.S. stock market but continue to rank politics and the national
debt as top concerns. Fifty percent of US investors see a diversified
portfolio as a hedge against US-China trade tensions specifically, in
line with UBS GWM's own views, compared with 41% who favor cash.
Filippo Ilardi, US Client Strategy Officer at UBS Global Wealth Management,
says: "We are pleased to see a substantial increase in investors
willing to put more money in the market. Wealthy Americans are concerned
about the political environment and US-China trade tensions but we are
encouraged that they see diversification as an important way of managing
some of these risks."
Overall,
41% of US investor respondents expressed optimism on the global economy
and 30% expressed pessimism. This represented an improvement from the
37% who expressed optimism and the 31% who expressed pessimism in the
Investor Sentiment survey released in the second quarter.
Thirty-seven
percent also expressed an intention to invest more in the markets, up
significantly from 26% in the previous quarter. Most investors remain
optimistic on US stocks specifically, although the proportion has
declined slightly from 57% of respondents to 53%.
US
business owners were especially positive, with 81% optimistic about
their business compared with 75% in the previous quarter. Overall, 46%
said they intended to hire more workers versus 20% in the quarter prior.
Business owners' top concern was healthcare costs, as cited by 61% of
respondents, up 5 percentage points quarter over quarter. This worry was
echoed in part by US high net worth investors, who cited healthcare
costs as their third highest concern.
Mike Ryan, Americas Chief Investment Officer at UBS Global Wealth Management, says:
"We believe US investors are right to be positive on the US stock
market outlook, and we retain an overweight position in US equities in
our US client portfolios, although returns for the balance of the year
are apt to be more modest given the impressive run for stocks during the
first half. We are also likely to see periodic bouts of volatility as
investors contend with ongoing trade tension and heightened expectations
for Fed rate cuts."
Mark Sanborn, Head of Americas Investment Platforms and Solutions at UBS Global Wealth Management, says:
"Wealthy Americans are rightly warming up to US markets amid the
ongoing recovery in financial assets in 2019. In addition to interest in
US stocks specifically, we are seeing encouraging levels of interest in
more diversified portfolios as a means for investors to hedge risk and
keep their financial plans on track."
Globally,
sentiment also improved in the most recent quarter. The proportion of
investors optimistic about the global economy remained unchanged on 51%,
while 46% of investors planned to invest more, an increase of 4
percentage points.
After
the US, the region with the fastest-growing willingness to invest was
the European Union, after the European Central Bank signaled it would
consider fresh stimulus in response to the European economic slowdown.
Some 47% of European respondents outside Switzerland said they planned
to invest more, up 8 percentage points quarter over quarter.
Notes to Editors
About the survey
UBS
surveyed 3,899 investors and business owners with at least $1M in
investable assets (for investors) or at least $250k in annual revenue
and at least one employee other than themselves (for business owners),
from June 3 - July 6, 2019. The global sample was split across Brazil,
China, Germany, Hong Kong, Indonesia, Italy, Japan, Malaysia, Mexico,
Philippines, Singapore, Switzerland, Taiwan, Thailand, the UAE, the UK,
and the US.
About UBS Global Wealth Management
As
the world's largest wealth manager, UBS Global Wealth Management
provides comprehensive advice, solutions and services to wealthy
families and individuals around the world. Clients who work with UBS
benefit from a fully integrated set of wealth management capabilities
and expertise, including wealth planning, investment management, capital
markets, banking, lending and institutional and corporate financial
advice.
About UBS
UBS
provides financial advice and solutions to wealthy, institutional and
corporate clients worldwide, as well as private clients in Switzerland.
UBS' strategy is centered on our leading global wealth management
business and our premier universal bank in Switzerland, enhanced by
Asset Management and the Investment Bank. The bank focuses on businesses
that have a strong competitive position in their targeted markets, are
capital efficient, and have an attractive long-term structural growth or
profitability outlook.
UBS
is present in all major financial centers worldwide. It has offices in
52 countries, with about 34% of its employees working in the Americas,
34% in Switzerland, 18% in the rest of Europe, the Middle East and
Africa and 14% in Asia Pacific. UBS Group AG employs approximately
61,000 people around the world. Its shares are listed on the SIX Swiss
Exchange and the New York Stock Exchange (NYSE).
© UBS 2019. All rights reserved. The key symbol and UBS are among the registered and unregistered trademarks of UBS.
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