A UBS survey found wealthy investors and business owners having a positive view on the economy and stock market in 2020, in the backdrop of emerging markets’ growth and a decrease in political concerns.
The study, which surveyed over 4,800 wealthy investors and business owners in 19 markets, found 67% of wealthy investors having an optimistic outlook on their own region’s economy and 60% optimistic about the global economy.
The comparable figures are 61% and 53%, respectively, in the survey conducted three months ago.
Of those polled, 65% had a positive outlook on their regional stock markets compared to 56% three months ago.
The US recorded the biggest improvement in investor sentiment, with 68% of the respondents in the nation having a positive outlook on their own region’s economy and 64% optimistic about their region’s stock market.
The comparable figures for the US are 55% and 50%, respectively.
The US was followed by Asia, which recorded the second most significant improvement in investment sentiment with more than 70% positive on the economy and stock market.
Overall, the Asian market had the most positive overall sentiment.
The investor sentiment improvement in the US and Asia comes in the wake of easing trade conflicts between the US and China.
In Europe, 57% of the investors were optimistic about their region’s stock market versus 50% in the previous survey.
In Latin America, 68% of the respondents were positive on their region’s stock market compared to 64% in the prior survey. Economic conditions particularly deteriorated in Argentina.
For 42% of the respondents, the key concern was their country’s politics. Three months earlier, the figure was 47%.
Domestic politics concern was the greatest in the US, with 55% of the respondents citing the same.
UBS Global Wealth Management divisional vice chairman Paula Polito said: “Virtually all investors reported positive portfolio returns in 2019, with continued high expectations for 2020.
“Optimism on the economy and the stock market continue to increase, but geopolitical events could temper that optimism at any point.”