UBS Global Wealth Management survey reveals rising sentiment
High net worth individuals and business owners are feeling more confident according to a new global survey.
Rising sentiment has been driven by reduced concerns about their own region’s economy with 67% confident in this respect in the fourth quarter of 2019, up from 61% in the previous quarter.
The UBS Global Wealth Management Investor Sentiment Survey also reveals that 65% were optimistic on their regional stock markets, up from 56%, with cash levels declining from 27% of portfolios to 25%.
The buoyant mood means high expectations that 2020 will bring strong returns for investors; 94% expected positive returns and 44% anticipated returns in double digits, with this optimism exacerbated by just 5% of respondents reporting negative returns in 2019 while 53% earned returns in double digits.
"Virtually all investors reported positive portfolio returns in 2019, with continued high expectations for 2020. Optimism on the economy and the stock market continue to increase, but geopolitical events could temper that optimism at any point," said Paula Polito, Divisional Vice Chairman, UBS Global Wealth Management.
US leads sentiment
Wealthy individuals and business owners in the United States led the rise in sentiment in the fourth quarter with 68% were optimistic in their own economy compared to 55% in the previous quarter and 64% were confident in the region’s stock market, up from 50%.
However, 55% rank domestic politics as a top concern.
Seventy percent of Asians were confident in their region’s economy and stock markets but the poll was conducted across 19 markets from December 19 to January 12, before the extent of the coronavirus outbreak was widely reported.
