The World's Richest Investors Are Waiting To Buy Stocks

The World's Richest Investors Are Waiting To Buy Stocks

almost 4 years ago2 mins

A new survey from UBS Wealth Management on Wednesday revealed that most of the world’s richest investors are waiting for stock prices to fall further before buying – but their outlook is optimistic for at least one part of the planet… 🌏

What does this mean?

The Swiss bank’s investment management arm looks after the portfolios of some of the world’s most moneyed, including half of its billionaires. It tapped some 4,000 investors and business owners with over $1 million in investable cash or revenue earlier this month for their thoughts on market movements – and the results are worth noting.

61% of all respondents want to see global stocks drop another 5%-20% before buying, with only 23% keen to invest more as things stand. A similar-sized majority believe a worldwide recession is highly likely in the next year – although that means 4 in 10 disagree with official projections about the effects of coronavirus-induced lockdowns around the globe.

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Unsurprisingly, only 30% of high-net-worth investors in the US are optimistic about short-term economic performance there, compared to 68% just three months ago. In one region, however, UBS’s survey subjects are less downbeat: 55% of Asian investors are optimistic about the next six months 😳

Why should I care?

The relatively rosy outlook for Asian economies (and stock markets) is perhaps unsurprising: as the coronavirus crisis – and the economically stultifying response – occurred earlier there, the region may be poised to recover sooner than elsewhere.

But while one major Asia-wide stock index joined US shares in returning to “bull market” territory on Wednesday, UBS’s super-rich investors remain cautious. 47% of its poll participants overall (and 58% in the US) expect to keep their stock investments the same over the next six months.

A recent survey showed the proportion of investments held in cash at its highest since 2001
A recent survey showed the proportion of investments held in cash at its highest since 2001

Still, the 16% planning to reduce their exposure are significantly outweighed by the 37% who expect to invest more in stocks at some point between now and Halloween. Trying to work out when markets hit rock bottom may be tempting – but the main message from the super-rich may simply be to sit tight for now... 🤔

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