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optimism Global High Net Worth Investors Falls to early-pandemic levels amid ongoing economic and market concerns The effect of inflation War in Ukraine, according to a survey by Swiss wealth management firm UBS.
Investors focus on their retirement savingsUBS’s quarterly investor sentiment survey found that some people are reluctant to buy aggressively.
geopolitical risk, inflation, cyber securityglobal trade conflicts and Risk of a potential recession It is the biggest concern of UAE investors.
Some 45% of UAE respondents (surveying more than 2,800 investors and 1,129 business owners in 14 markets) are delaying large purchases, and 72% are concerned about the long-term impact on retirement savings and future funds for generations .
“Global investors are concerned about rising inflation, ukraine war and the possibility of a recession,” said Iqbal Khan, president of UBS Europe, Middle East and Africa and co-president of UBS Global Wealth Management.
UK inflation is currently at 40-year high of 9.4%forced to rise due to rising food and energy prices, while US CPI also hit a 40-year high of 9.1% in June.
Inflation in the UAE has been rising, in line with global trends. According to the UAE Central Bank, the consumer price index rose by 3.4% in the first quarter of 2022, compared with 0.6% and 2.3% in the third and fourth quarters of 2021.
inflation is It is expected to reach 5.6% by 2022the central bank said.
Interest rates, volatility, recession risk and inflation are the main economic issues that UAE investors consider to be investing more in the market. However, 92% of investors in the UAE are not sure where to invest, and 90% are afraid of making the wrong choice.
When investing further in the market, 33% of investors in the UAE would increase their investment if the market fell a further 10%, the UBS survey found.
UAE business owners Worried about rising material costs, 44% have raised prices in the past six months and 48% will do so for the rest of the year.
“Emirati investors remain vigilant as volatility, inflationary pressures and geopolitical risks continue to fuel uncertainty,” said Ali Janoudi, head of wealth management in the Middle East, Turkey and Africa at UBS.
“They have shown interest in investment themes such as energy security, smart mobility, automation and robotics. Business owners in the region, while also concerned about rising prices and material costs, are optimistic about the regional economy next year and plan to continue hiring. “
While most global investors are now worried about making bad investment decisions and holding cash in the current environment, they see a potential investment opportunity if the market falls further. According to UBS, they are very interested in energy security, smart mobility and automation/robotics as long-term investment themes.
The majority of business owners surveyed plan to continue hiring workers and investing in their companies over the next 12 months.
Nearly half of business owners globally expect price hikes in the next six months due to rising material costs and concerns about wage inflation, UBS said.
In the US, short-term investor optimism about the economy and the stock market fell to 39% and 37%, respectively, from 58% in May.
If the market fell a further 10%, younger investors were more likely to increase their investment allocation, with 38% of millennials likely to do so, compared with 18% of baby boomers and above.
In Asia Pacific, optimism remains the highest of any region, with most investors feeling confident in the stock market and its economy, the survey found.
Updated: August 10, 2022 9:56 am
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