Forty eight per cent of high net worth (HNW) and ultra-high net worth (UHNW) investors feel optimistic about the short-term economic outlook following the election of Donald Trump as US President-elect, up from 39 per cent just three weeks earlier.
That’s according to the latest Investor Watch Report from UBS Wealth Management Americas (WMA) which reveals that a sharp increase in optimism among Trump supporters outweighed a decline among Clinton supporters.
Optimism about Trump's impact on the stock market is also up dramatically after the positive market returns post-election. Prior to the election, only 25 per cent of investors expected positive returns for the S&P 500 over the next 6 months if Trump won. Now, 53 per cent expect positive returns.
UBS Investor Watch found that Trump’s positioning as an outsider to the Washington establishment was critical to his election. Nine out of 10 wealthy investors feel Washington is in need of disruption, and two out of three (66 per cent) believe a Trump presidency will be a catalyst for change.
Additionally, investors demonstrated more faith in Trump’s ability to address their top issues – the economy, healthcare and US national security – than Hillary Clinton.
"Before the election, we saw many investors adopt a defensive stance, raising cash and moving away from stocks," says Paula Polito, client strategy officer of UBS Wealth Management Americas. "With the election behind us, many investors are looking ahead with a growing sense of optimism about the economy and the markets."