UBS Investor Watch Report Shows 9% Increase In HNW Investor Confidence Vs. Pre-Election Sentiment

UBS Wealth Management Americas (WMA) today released its quarterly Investor Watch report, "In the market for change," which shows increasing optimism among high net worth and ultra-high net worth investors following the election of Donald Trump as US President-elect.

UBS surveyed 1,200 wealthy investors immediately before and after the election to determine changes in sentiment and mindset. Since the election, 48% of investors feel optimistic about the short-term economic outlook, up from 39% just 3 weeks earlier. This rise is driven by a sharp increase in optimism among Trump supporters that 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% of investors expected positive returns for the S&P 500 over the next 6 months if Trump won. Now, 53% 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%) 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 U.S. national security - than Hillary Clinton.

"Before the election, we saw many investors adopt a defensive stance, raising cash and moving away from stocks," said 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."

Investor actions - before and after the election

Before the election, half of investors moved to protect their money. Thirty percent increased cash, while a quarter (25%) shifted to a more conservative asset allocation or cut back on spending (23%). Only 9% increased investments in the stock market.

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