A majority of investors surveyed are optimistic about the US economy, though the outlook for US stocks has dipped slightly from the previous quarter. In 2Q, 53% of investors were optimistic about US stocks, down from 57% in Q1. That being said, investors continue to see the US market as the most attractive region for investing. The US was considered by 47% to be the most attractive market, followed by 27% who favored Asia.
While US investors continue to hold almost a quarter of assets in cash, the survey indicates that investors are looking for opportunities to put money to work, with 37% of Q2 survey respondents saying they plan to invest more in the next 6 months. This compares to only 26% who held such plans in Q1.
What’s keeping investors up at night?
Top concerns are the political environment, the national debt and healthcare costs. As for the ongoing US-China trade conflicts, 47% expect it to be resolved in 4-months to a year while 30% see the conflict lasting beyond a year. Diversification, holding cash and investing in industries with low exposure to trade (e.g., healthcare) were seen as top strategies for protecting against a prolonged trade conflict.
Business owners surveyed were particularly optimistic about their business, with 46% planning to hire more in the next 12 months, a big jump from the 20% who said the same thing in Q1, though they are concerned about healthcare costs, cyber security and taxes. Importantly, business owners said they were interested in topics such as building up wealth, financial planning and passing business to family.
About the survey
UBS surveyed high net worth investors and business owners globally on their economic outlook, investment plans and topics of interest. The survey included 733 investors and 210 business owners in the US with at least USD 1M in investable assets (for investors) or at least USD 250k in annual revenue and at least one employee other than themselves (for business owners), from June 3 - July 5, 2019. For the 1Q19 results, UBS surveyed 400 investors and 100 business owners in the US with at least USD 1M in investable assets (for investors) or at least USD 250k in annual revenue and at least one employee other than themselves (for business owners), from March 10 - 14, 2019.
For more, see Investor sentiment: growth mode.
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Review Code: IS1903423