Is unpredictability the new normal?

Is unpredictability the new normal?

Unexpected events can put serious pressure also on the most experienced investor. Recent times have seen many unexpected events with major political, economic and social consequences. At the same time, a series of powerful long-term trends continues, each with the potential to cause significant disruption and uncertainty.

Opinions differ on whether or not this is anything out of the ordinary. It is certain, however, that growing wealth is becoming increasingly difficult.

UBS Investor Watch* is UBS Wealth Management’s international analysis of issues facing people who have seven-figure sums to save and invest.

  • This is the most unpredictable period in history, according to 83% of interviewed millionaires. Economic and financial uncertainty are key drivers, followed by domestic social issues – with high youth unemployment considered as the biggest source of domestic uncertainty.
  • Avoiding the distraction of short-term risks is a significant challenge. More than two thirds (68%) of Italian millionaires admit they are distracted from their long-term planning by short-term events.
  • Millionaires are aware of their financial goals. In an unpredictable age, supporting children, grandchildren and future generations emerges as the priority for Italian millionaires. 45% of Italy’s wealthy say this is the financial goal they are most focused on currently. This is followed by growing their capital through successful investments (40%) and having the means to embark on new adventures and opportunities (32%).
  • But they are not less confident to be able to realize them. Only 41% of Italian millionaires think that they will achieve their long-term financial goals: the lowest of all countries.

Even though we are experiencing one of the most unpredictable times of history, there are good opportunities to protect and grow your wealth. However, it is crucial to focus on long-term goals and to adopt an integrated planning that considers all the assets - investment, profession, and family.

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