Wealthy investors across the globe are cautious on the outlook for 2020 in anticipation of increased market volatility. However, they are bullish on the decade ahead, according to a survey by UBS.
The study surveyed over 3,400 HNW investors in Brazil, China, Germany, Hong Kong, Italy, Japan, Mexico, Singapore, Switzerland, Taiwan, UAE, UK, and the US.
Of those polled, 72% found the investment environment more challenging than it was five years earlier while 79% predicted that markets will become more volatile.
The key areas of concern include the US-China trade war, domestic politics, and the upcoming US election that were cited by 44%, 41% and 37% of the respondents, respectively.
Currently, affluent investors were found to hold 25% of their assets in cash, with 60% planning to raise the level further.
However, when asked about their outlook on the decade ahead, 69% were positive on investment returns. Also, 88% of the respondents said that they were keen to align their portfolios with long-term investment mega-trends.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataSustainable investing was an area of interest for 82% of the respondents, the study revealed. The interest was found to be more pronounced in young investors.
UBS Global Wealth Management client strategy officer Paula Polito said: “The rapidly changing geopolitical environment is the biggest concern for investors around the world.
“They see global interconnectivity and reverberations of change impacting their portfolios more than traditional business fundamentals, a marked change from the past.”