It’s no surprise that high net-worth investors are often hesitant to parcel out funds. In fact, more than 63% of these HNW investors find high value in an advisor who offers personalized advice. After the throes of a turbulent 2018, most people were expecting slow market growth as companies recover from the changing tides.
However, a recent survey of high net-worth investors has revealed that most wealthy people are optimistic regarding the status of the global economy, bullish, even. According to the recent report, more wealthy individuals are planning to invest in 2019 as inbound markets rebound.
The quarterly investment survey was performed by UBS, a global wealth management firm based in Zurich. The Investor Sentiment survey found that 51% of high net-worth investors across 17 countries are optimistic when it comes to investment prospects in the global economy. On the other side of the coin, only 21% are pessimistic. That’s about the level of oil left in a compressor oil change at 20%.
But even this small amount of pessimism could have devastating consequences. Just as the leftover oil will work to contaminate a good compressor, one negative attitude has the potential to sway a crowd.
Even more surprisingly, this bullish market could be the result of the turbulence in the first place. Amidst the ever-fluctuating markets of 2018, many of these high net-worth investors saw the volatility of the market as an investment opportunity.
Meanwhile more than 56% of the 3,600 investors interviewed are confident in the success of their own market equities while 49% are reportedly bullish regarding global equities.
The best news of all? More than 60% of investors and 68% of small business owners are optimistic in the advancement in their own region’s economic prospects.
Unfortunately, the U.S. is lagging behind other nations, with fewer HNW investors willing to make new investments with only 26% of respondents expressing confidence in the market. Comparatively, Latin American investors and Asian investors alike are among the most likely to invest large sums of money.
These investments include a variety of different jobs, companies, and industries. While trucks are able to move more than 71% of the nation’s freight, more industries need investments to bolster profits and provide the proper resources to truckers.
But what about Brexit? There have been rumors swirling for years regarding the effect moving out might have on the nation’s psyche.
Luckily, most HNW individuals are also optimistic when it comes to the financial changes encroaching on Britain. In fact, more than 41% of investors throughout the UK think of Brexit as positive.
According to UBS Global Wealth Management, these prospects look good.
“We have seen significant investor interest in multi-asset mandates and other diversified solutions as markets recover,” notes GBS head of investment platforms Christian Wiesendanger.
“Most recently, our 100% sustainable cross-asset portfolio surpassed $5bn in assets globally. Investors should continue to look past their favored asset classes and countries for opportunities as the global business cycle advances.”
