The number of investors who are pessimistic about the economy has fallen from 60 per cent a year ago to 38 per cent, while younger private clients are even more upbeat and willing to take risks, a new survey shows.
According to UBS Wealth Management Americas' Investor Watch report - a new quarterly survey of US private clients - nearly half (45 per cent) of younger private clients aged between 25 and 49 have more confidence in the short-term outlook and are more willing to take risks than a year ago, compared to only a third of older investors.
Meanwhile, the "vast majority" of investors feel they have the right amount of cash, with high net worth investors in particular (nearly half) planning to decrease cash holdings and reinvest in the markets over the next year.
In terms of what is unnerving investors the most at present, the survey found that debt, healthcare and the election top the list, with 61 per cent of US private clients "highly concerned" about the size of the national debt and the potential impact on their financial goals and objectives. Rising healthcare costs and the national election were close behind on the list of investors’ worries.
"These findings indicate that while pre-election investor activity may be low, signs point to increased action post-election," UBS said in the report. "At least one piece of uncertainty in investors’ minds will be out of the way."