![]() Short-term optimism among Latin American investors has held up better than in the US, with 53% feeling optimistic about the economy and the stock market in their region vs. Looking ahead to the mid-term elections, the most important issues to US high-net-worth-investors are the economy (85%), followed by healthcare (74%), taxes (72%) and Social Security (71%). ![]() If markets decline a further 10%, younger investors are much more likely to increase their investment allocation to the markets (38% among Millennials and younger) than older investors (18% among Boomers and older). In the US, short-term investor optimism on the economy and stock market plunged to 39% and 37%, respectively, from 58% in May. “Thoughtful wealth management advice and solutions across business planning, portfolio diversification and exit planning will be critical for them as they navigate the market.” Regional Findings: “Business owners’ increased optimism and steady focus on hiring and investing in their businesses is an encouraging sign given the current market environment, as they are a key driver of the global economy,” said Tom Naratil, President of UBS Americas and Co-President of UBS Global Wealth Management. Nearly half of business owners expect to raise prices in the next six months, driven by rising materials costs and concerns over wage inflation. In contrast, business owner optimism has rebounded after the largest drop in two years, and most business owners plan to continue to hire workers and invest in their businesses over the next 12 months. “In challenging times like this, it’s important that investors continue to seek expert guidance and perspectives to understand the environment and potential opportunities to support their liquidity, longevity and legacy needs.” ![]() “Investors across the globe are concerned about the combination of higher inflation, the war in Ukraine and the potential for a recession,” said Iqbal Khan, President of UBS Europe, Middle East, and Africa and Co-President of UBS Global Wealth Management. ![]() Despite this, they see potential investment opportunities if markets decline further, and are highly interested in energy security, smart mobility and automation/robotics as long-term investment themes. With investor optimism waning, nearly three out of four investors are now worried about making bad investment decisions in the current environment and are holding onto cash. The survey of over 2,800 investors and 1,100 business owners across 14 markets found that investors are focused on their retirement savings, with some holding off on making big purchases. Structural reforms can further support the fight against inflation by improving productivity and easing supply constraints, while multilateral cooperation is necessary for fast-tracking the green energy transition and preventing fragmentation.Zurich, Switzerland, 3 August 2022 – Optimism among high-net-worth investors dipped to early-pandemic levels on continuing concerns about the economic and market impact of inflation and the war in Ukraine, according to the latest quarterly Investor Sentiment survey from UBS, the world's leading global wealth manager. Monetary policy should stay the course to restore price stability, and fiscal policy should aim to alleviate the cost-of-living pressures while maintaining a sufficiently tight stance aligned with monetary policy. Global inflation is forecast to rise from 4.7 percent in 2021 to 8.8 percent in 2022 but to decline to 6.5 percent in 2023 and to 4.1 percent by 2024. This is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the COVID-19 pandemic. Global growth is forecast to slow from 6.0 percent in 2021 to 3.2 percent in 2022 and 2.7 percent in 2023. The cost-of-living crisis, tightening financial conditions in most regions, Russia’s invasion of Ukraine, and the lingering COVID-19 pandemic all weigh heavily on the outlook. Global economic activity is experiencing a broad-based and sharper-than-expected slowdown, with inflation higher than seen in several decades.
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