[ad_1]
DUBAI, United Arab Emirates: Optimism among high-net-worth investors has fallen to early-pandemic levels due to persistent concerns about the economic and market impact of inflation and the war in Ukraine, according to UBS’s latest quarterly investor sentiment survey. The world’s leading global wealth management firm. The survey of more than 2,800 investors and 1,100 business owners in 14 markets found that investors are focused on their retirement savings, and some are reluctant to make big purchases. In the UAE, input from 200 investors and business owners was included.
With investor optimism waning, nearly three-quarters of investors are now worried about making the wrong investment decision in the current environment and are holding on to cash. Nonetheless, if the market declines further, they see potential investment opportunities and are very interested in energy security, smart mobility and automation/robotics as long-term investment themes.
“Investors around the world are concerned about rising inflation, the war in Ukraine 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. Expert guidance and perspectives must continue to be sought to understand the environment and potential opportunities to support their mobility, longevity and heritage needs.”
“Emirati investors remain vigilant as volatility, inflationary pressures and geopolitical risks continue to lead to a sense of uncertainty. We have the ability to guide them through this period, and they are showing signs of investment themes such as energy security, smart mobility, automation and robotics. interest,” said Ali Janoudi, head of wealth management Middle East, Turkey and Turkey at UBS. Africa. “Business owners in the region, while also concerned about price increases and material costs, are optimistic about the regional economy next year and plan to continue hiring.”
By contrast, optimism among business owners has rebounded after the biggest drop in two years, with most planning to keep hiring workers and investing in their businesses over the next 12 months. Nearly half of business owners expect to raise prices in the next six months due to rising material costs and concerns about rising wages.
Tom Naratil, president and co-president of UBS Americas, said: “Given the current market environment, the growing optimism and continued focus on recruiting and investing in business owners is an encouraging sign as they A major driver of the global economy.” UBS Global Wealth Management. “Thoughtful wealth management advice and solutions in business planning, portfolio diversification and exit planning are essential for them to navigate the market.”
Regional Survey Results:
United Arab Emirates
Inflation, cybersecurity and potential recession risks are key worry For UAE investors, up to 45% in Postpone bulk purchases and 72% are concerned about the long-term impact on retirement savings and funds for future generations. Despite inflation concerns, cash holdings have only edged down since May. When investing further in the market, 33% of investors in the UAE will increase their investment if the market falls by a further 10%. UAE business owners are concerned about rising material costs, with 44% raising prices in the past six months and 48% increasing in the second half of the year.
us
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 falls a further 10%, younger investors (38% among millennials and young adults) are more likely to increase their allocation to the market than older investors (18% among baby boomers and seniors) . Looking ahead to the midterm elections, the top concern for U.S. high net worth investors is the economy (85%), followed by health care (74%), taxes (72%) and Social Security (71%).
Latin America
Short-term optimism among Latin American investors is better than in the U.S., with 53% feeling optimistic about the region’s economy and stock markets, compared to 60% in the previous period. Their optimism stems from a return to normalcy, continued strong consumer demand and potential opportunities to capitalize on market cycles.
Europe
Across Europe, high net worth investors’ optimism about the stock market and the economy fell by 10 and 15 percentage points, respectively, to 50% from their May levels. Reasons cited by those optimistic Europeans include strong corporate earnings, employment and consumer demand.
Asia-Pacific
In Asia Pacific, optimism remained stable and remained the highest of any region, with six in 10 investors feeling confident in the stock market and economy. Investors in the region are interested in long-term investment themes including energy security and smart transportation.
To learn more, visit: ubs.com/investor-sentiment
-Finish-
About the UBS Investor Sentiment Survey
UBS surveyed 2,864 investors with investable assets of at least $1 million and 1,129 business owners with annual revenue of at least $1 million and employees other than at least one employee between June 29 and July 19, 2022 . The global sample is distributed in 14 markets: Argentina, Brazil, China, France, Germany, Hong Kong, Italy, Japan, Mexico, Singapore, Switzerland, United Arab Emirates, United Kingdom and United States. For the May results, UBS surveyed 2,644 investors and 1,084 business owners globally between March 30 and April 22, 2022.
About UBS
UBS brings together a global investment ecosystem where people and ideas connect, opportunities are realized, and provide financial advice and solutions to wealthy, institutional and corporate clients around the world, as well as private clients in Switzerland. Providing investment solutions, products and influential thought leadership, UBS is a leading global wealth management firm, providing large-scale and diversified asset management, dedicated investment banking capabilities and personal and corporate banking services in Switzerland. The company focuses on businesses that have strong competitive positions in their target markets, are capital efficient, and have attractive long-term structural growth or profitability prospects.
UBS has operations in all major financial centers around the world. It has offices in more than 50 regions and locations, with approximately 30% of its employees working in the Americas, 30% in Switzerland, 19% in Rest of Europe, Middle East and Africa, and 21% in Asia Pacific. UBS has more than 72,000 employees worldwide. Its shares are listed on six SIX Swiss exchanges and the New York Stock Exchange (NYSE).
[ad_2]
Source link