Investors poised to put cash to work once
key issues addressed
Two-thirds of business owners plan to
increase investment, and more than half plan to increase
hiring
Key findings:
- 61% of all investors are optimistic
about the 12-month economic outlook
- 66% of investors are optimistic
about the short-term outlook for stocks
- 91% of investors believe that
investing in infrastructure will positively impact the
economy
- 90% of investors believe that the
U.S. government should spend more time coming up with a better
healthcare solution
- 74% of investors think that
government should focus on tax reform next
- 66% of small business owners plan to
invest more in their businesses
- 56% of small business owners intend
to increase hiring
UBS Wealth Management Americas (WMA) today released its
quarterly UBS Investor Watch report, “On your mark…,” which found
that since the election, a consistently growing number of investors
across the political spectrum are optimistic about the U.S.
economy. 58% believe the administration will have a positive impact
on the economy, up from 54% in December – even Democrats feel more
positive than they did during the last survey.
The majority of investors (61%) are optimistic about the
12-month economic outlook. More than half of investors (56%) want
to deploy additional capital, and anticipate more progress on key
policy initiatives that they believe will jumpstart economic
growth: infrastructure, taxes and another attempt at healthcare
reform.
Among small business owners, who are also surveyed in the
report, most are optimistic about an improved business environment
(54%). As such, the proportion of business owners planning to
invest more in their business and increase hiring is twice as high
as those looking to invest less or downsize.
"It is encouraging that we continue to see optimism among
investors and small business owners rising over time, as well as a
willingness to put their capital to work," said Paula Polito,
Client Strategy Officer of UBS Wealth Management Americas. "Once
investors start to see more progress on initiatives that boost the
economy, it seems likely they will be further committed."
Overall, investors tend to see the current investment climate as
one with potential for high returns. Two-thirds (66%) feel
optimistic about the short-term outlook for stocks. While
confidence among Republicans and Independents has remained steady,
sentiment among Democrats has jumped significantly and many
investors have become more worried about missing out on market
gains.
Investors are ready to capitalize on signs of additional
progress from the Administration; prioritize healthcare,
infrastructure and tax reductions
About half of investors (47%) approve of the job the
administration is doing, but 61% want to see more stability from
the Administration and 48% want more clarity on the government’s
focus areas prior to investing. An equal percentage of investors
(40%) are waiting for lower personal income taxes and more
infrastructure spending. The U.S. economy remains investors’ top
issue and, by and large, they expect government action.
Investors’ assessments of the administration differ by party
affiliation: broken down, 77% of Republicans approve of the job
done so far versus 24% of Democrats. However, investors from both
parties agree on the three areas of priorities for the new
administration. Nearly all investors (91%) believe that investing
in infrastructure will positively impact the economy – particularly
fixing American airports, per UBS’s recent infrastructure report –
and three-quarters (74%) would like to see tax reform be the
Administration’s next focus, but 67% are less optimistic about the
potential results of tax reform based on the outcome of attempts at
healthcare reform.
Healthcare is still a top concern. Nearly all investors (90%)
think the government should spend more time coming up with a better
healthcare solution, with 61% wanting the current Affordable Care
Act revised, though they are willing to wait for a more thoughtful,
effective alternative.
"Investors continue to be positive on the economy’s future, but
continue to set the bar high for the Administration based on
promises made during the campaign," said Sameer Aurora, head of
Client & Investor Insights for WMA. "Though a number of
investors have tempered their optimism as a result of the recent
healthcare bill situation, with the right moves, many investors
still believe the Administration can achieve its goals and set the
country on a path for growth."
Small business owners continue making plans to invest and
increase hiring
As with high net worth investors, the survey of small business
owners found that they continues to feel positively about the
potential for growth under the Trump Administration. Three-quarters
of small business owners (75%) are optimistic about the outlook for
their business in the next 12 months, with 54% highly optimistic
about an improved business environment with fewer regulations –
compared to 45% in December 2016 – and 49% highly optimistic about
having a greater ease of doing business compared with 37% in
December.
As a result of this optimism, 66% of small business owners plan
to invest more in their businesses and 56% intend to increase
hiring. These figures compare to the 31% who plan to invest less in
their businesses and 29% who say they will downsize their
workforce.
About UBS Investor Watch
UBS Wealth Management Americas surveys U.S. investors on a
quarterly basis to keep a pulse on their needs, goals and concerns.
After identifying several emerging trends in the survey data, UBS
decided in 2012 to create the UBS Investor Watch to
track, analyze and report the sentiments of affluent and high net
worth investors. For more on investor watch visit
www.ubs.com/investorwatch
Methodology
For this nineteenth edition of UBS Investor Watch, 2,272
affluent and high net worth investors (with at least $1 million in
investable assets) participated from March 28 – April 3, 2017,
including 510 with at least $5 million. We also included an
oversample of 383 business owners who have at least one employee
besides themselves. With 90 survey respondents, we conducted
qualitative follow-up interviews.
Notes to editors
About UBS Wealth Management Americas
Wealth Management Americas is one of the leading wealth managers
in the Americas in terms of financial advisor productivity and
invested assets. Its business includes UBS’s domestic US and
Canadian wealth management businesses, as well as international
business booked in the US. It provides a fully integrated set of
wealth management solutions designed to address the needs of ultra
high net worth and high net worth clients.
About UBS
UBS provides financial advice and solutions to wealthy,
institutional and corporate clients worldwide, as well as private
clients in Switzerland. The operational structure of the Group is
comprised of our Corporate Center and five business divisions:
Wealth Management, Wealth Management Americas, Personal &
Corporate Banking, Asset Management and the Investment Bank. UBS's
strategy builds on the strengths of all of its businesses and
focuses its efforts on areas in which it excels, while seeking to
capitalize on the compelling growth prospects in the businesses and
regions in which it operates, in order to generate attractive and
sustainable returns for its shareholders. All of its businesses are
capital-efficient and benefit from a strong competitive position in
their targeted markets.
UBS is present in all major financial centers worldwide. It has
offices in 54 countries, with about 34% of its employees working in
the Americas, 35% in Switzerland, 18% in the rest of Europe, the
Middle East and Africa and 13% in Asia Pacific. UBS Group AG
employs approximately 60,000 people around the world. Its shares
are listed on the SIX Swiss Exchange and the New York Stock
Exchange (NYSE).
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version on businesswire.com: http://www.businesswire.com/news/home/20170425006059/en/
MediaFor UBS Wealth Management AmericasMaya Dillon,
+1-212-713-3130maya.dillon@ubs.com
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