Investing for 2020

Maintain control over your portfolio, even in uncertain times

06 Dec 2019

“Almost 60% of investors tell us that they feel that returns are out of their control,” shared UBS President Americas and Co-Head Global Wealth Management Tom Naratil on a recent episode of the UBS On-Air podcast.

But investors can maintain control over their portfolios, even in uncertain times. Keep reading to discover the key insights shared by Naratil.

Key takeaways

  • Business owners and high net worth investors expect geopolitics to have a greater impact on investing in 2020, making it more difficult to grow their wealth than it was five years ago. The US presidential election tops their list of concerns.
  • Despite frustrations with fiscal and monetary policy, seven in 10 investors around the globe feel optimistic about prospective returns over the next decade.
  • UBS President Americas Tom Naratil recommends “ignoring the political noise” and instead playing the long game to maximize your returns.

What investors expect in the year ahead

In the recent UBS Investor Watch and CIO Year Ahead reports, business owners and high net worth investors chimed in about what they are seeing in the markets and what they expect to happen in 2020. A common belief that emerged from the study, according to Naratil, is that “things are not as logical as they used to be. It’s harder than it was five years ago.”

Geopolitics has become a big driver, sometimes taking precedence over economic results and business fundamentals, Naratil explained. Trade conflicts, political environments and election results are all top of mind. “Interestingly, one of the top three concerns for 2020 from investors around the globe is the 2020 US presidential election, regardless of where they’re located.”

Fiscal and monetary policy

After geopolitical concerns, fiscal and monetary policy are a big focus. How well are these policies working, or not working, when implemented by political leaders and central banks? And are there other opportunities for deregulation?

“Despite all of those concerns, you still have almost 70% of investors globally who feel optimistic about investment returns over the next decade,” Naratil shared.

Maintaining and growing your wealth

“The first thing investors should be doing is ignoring the daily noise,” said Naratil. “As we look ahead into 2020, [ignore] the political noise and think about investing for the long term.”

Putting yourself in this position is easier said than done, but the UBS Wealth Way framework, utilizing—Liquidity. Longevity. Legacy.—can help get you started. Contact your trusted advisor to learn more about how to implement Liquidity. Longevity. Legacy. and gain other important insights that will keep your money on the right track.

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