Investors Hold Big Cash Piles, Mull Stock Market Move - UBS Survey

Tom Burroughes, Group Editor, 29 April 2021


Smiling on Biden
Investors and business owners globally said they see the Biden administration as a tailwind for the global outlook over the next four years, the survey said. Sixty-four per cent of respondents said the administration was having a “positive impact” on the global economy, 60 per said it will support global markets, and 57 per cent said it will benefit their personal finances. Fifty-four per cent of business owners said it will be a boost for their companies. (The findings come at a time when lawmakers and the Biden administration are reportedly mulling a hike in capital gains taxes; in some states, such as California and New York, combined federal and state CGT could, depending on whether hikes are as large as some say, be near 60 per cent. Respondents to the UBS study might take a different view if such changes come to pass.)

Latin America
Most Latin American investors remain optimistic on stocks (61 per cent) and on their own economy (60 per cent), despite ongoing headwinds affecting the region’s recovery. Fifty per cent expect inflation to rise over the next three years, the third highest number globally.

European investors outside Switzerland have grown more confident in their region’s economy and in the stock market. In particular, 73 per cent say they are optimistic on stocks, the highest number globally. Investors based in the region are also the least likely to hold more than 10 per cent in cash, with only 53 per cent of total respondents.

Swiss respondents’ outlook on their own economy jumped over the quarter, with 57 per cent of investors expressing optimism compared with 45 per cent three months ago. Confidence in the stock market also rose by the biggest margin globally, to 67 per cent from 54 per cent in the prior survey.

Sixty-nine per cent of Asian investors are optimistic about their region’s economy, making them the equal second most upbeat globally. Asian investors also grew even more confident in the stock market, with 69 per cent expressing optimism compared with 61 per cent three months ago.

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