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."

Gender gaps

According to the findings, men are more likely to take an aggressive approach to investing and are twice as likely to describe their risk rolerance as "very" or "somewhat" aggressive (20 per cent versus 11 per cent). Women are also more likely to aim for a "small guaranteed" return, while men tend to be more focused on trying to outperform the market.

The survey also found that men are "significantly more optimistic" than women for the medium term (three to five years) and long term (10 years). "Given their more aggressive approach and more optimistic outlook, it’s not surprising that men would be much more likely to invest 'found' money immediately," the firm said, adding that women are more likely to increase savings.

What might be less obvious is that male optimism and female conservatism extend to their lifestyles, the firm noted. For example, on average men are spending more time and money on leisure activities (including travel, vacations and dining out) than they did in the past. Meanwhile, women are spending the same on leisure as they did before. "While both genders have cut back on shopping, women have shifted further in this direction," the report said.

The Investor Watch survey involved over 2,000 US investors.