Individual investor optimism is returning in the US according to Investor Watch, a new quarterly survey of US private clients’ investment decisions and primary concerns published by UBS Wealth Management Americas (WMA).
The first Investor Watch shows individual investors’ optimism returning, their flight to cash receding and their intentions to reinvest in financial markets and spend on experiences.
According to the survey, individual investors are more optimistic than a year ago: 35 per cent are optimistic about the short-term (12-month) economic outlook, versus 21 per cent a year ago. And while 38 per cent are pessimistic about the economy, that number is dramatically lower than a year ago, when 60 per cent felt this way.
Younger private clients aged 25-49 are more optimistic about the short-term outlook and are more willing to take risks; 45 per cent of younger investors are optimistic about the short-term economic outlook, compared to only one-third of older investors.
The vast majority of investors feel they have the right amount of cash. High net worth investors, especially, plan to decrease cash holdings and reinvest in the markets over the next year.
Debt, healthcare and the election are top of mind: 61 per cent percent of US private clients are highly concerned about the size of the national debt in terms of potential impact on their financial goals and objectives. Rising health care costs and the national election were close behind on the list of investors’ worries.
Investors are spending more time and money on leisure and experiential activities and less on shopping.
“Our Investor Watch survey identifies the top issues that concern our private clients, and allows us to tailor our individual investor research and recommendations to best help them navigate the current and future economic climate,” says Mike Ryan, chief investment strategist for UBS WMA. “Investor Watch is another tool in our intellectual capital arsenal of global research, in-depth advice and focused solutions that help clients reach their financial goals.”