Investors are not likely to put their money back into the market until the US debt ceiling situation improves, an overnight poll by UBS Wealth Management Americas reveals. 

According to the survey, 40 per cent of the 1,000 respondents said they are waiting for a signal of resolution on the US debt ceiling issue before they decide to jump back into the market. When asked what worries them in terms of potential impacts on their financial goals, 65 per cent pointed to the size of the US debt, up from 59 per cent in April. Some 40 per cent noted they are very worried about the government defaulting on its debt.

"Whether we're talking to and advising a corporate chief executive, a high net worth investor or a small business owner, it's clear that uncertainty over the US debt has frozen everyone in their tracks when it comes to actively participating in the market," said Robert McCann, the chief executive of UBS WMA. 

A similar survey conducted in April found that 53 per cent of the participants were optimistic about the economy's outlook for the short term and 27 per cent were pessimistic. In the most recent poll the balance has tipped towards a negative view: 60 per cent say they are pessimistic, while only 21 per cent take a more positive view.

The survey was conducted online from 27 to 28 July on 1,000 investors with at least $250,000 in investible assets, half of who had a minimum of $1 million.

In other news, UBS Wealth Management Americas continues to embark on its small business advisory program with the official launch of the pilot in New York City, under its partnership with The William J Clinton Foundation. Over the course of the program, 10 entrepreneurs from various communities who run high-growth businesses will receive financial and business advice from the private bank, with each participant partnered with a dedicated financial advisor from UBS.

In a separate statement, McCann said that small businesses are "the most critical engine of job creation in America." The 10 enterprises participating recorded an average annual revenue of $8.44 million and together employed 400 people as of the end of 2010.