Use Spotify? Access BizNews podcasts here.
Use Apple Podcasts? Access BizNews podcasts here.
___STEADY_PAYWALL___
By Charlie Wells
(Bloomberg) — Markets are down. War rages on. Recession looms. Yet high net-worth investors say they still feel positive about the future.
A full 59% of rich investors told UBS Group AG they are optimistic about the short-term outlook for the stock market, according to the Swiss lender’s Investor Sentiment survey, released Wednesday. That’s up from 50% three months ago, when markets were about to turn south again after a brief rally.
The investors cite strong demand for goods and services, a return to normalcy after the Covid-19 pandemic and healthy corporate earnings for their upbeat outlook.
The optimism is unevenly distributed across the world. Despite record inflation, an energy crisis and the war in Ukraine, investors in Europe had the most positive sentiment for the future, with 69% saying they felt optimistic about the region’s economy over the next 12 months. Asia followed, with 62% of Asian investors positive on the region’s prospects within the year. US investors trailed, with just 51% bullish on their region and nearly two-thirds saying they believe a recession is imminent.
Even if they see some signs of hope on the horizon, more than half of investors said they believe a recession has already begun, or will before the end of 2022. Nearly two thirds expect higher inflation next year. In response, nearly half have already cut spending, while 31% say they are planning to save less in order to offset the effects of rising prices. Their primary concerns are inflation, geopolitical risk and recession.
UBS polled 2,913 investors with at least $1 million in investable assets between Sept. 28 and Oct. 17Â around the globe.
Read also:
