According to the UBS Global Wealth Management poll, most of the world's wealthiest investors are waiting for a new market crash before buying back over fears of the impact of a pandemic on the global economy. .
This is the result of a UBS survey conducted with 2,928 investors and 1,180 business owners during the period April 1-20. The people covered by the survey are investors and business owners with investment assets of $ 1 million or more. Accordingly, 61% would like to see a further 5-20% decrease in stock before going down to buy. Meanwhile, 23% said that now is the best time to do that. 16% said that now was not the time to increase their stock exposure as it was a bear market.
Wealthy individuals are being cautious as 60% say the global economic downturn is likely to occur in the next 12 months. This is the result of UBS's exploration this April. However, these people all share positive views about the long-term prospects of the market.
A series of blockade measures aimed at controlling viruses spread around the world are closing businesses, dragging demand down and significantly increasing the likelihood of recession this year. While stocks have risen 20% from March lows, they are still being maintained at their 2002 highs.
Defensive is a common mentality. A Bank of America survey found that the amount of cash has been unprecedented since the September 11 terrorist attacks.
The amount of cash holdings is suddenly high
Meanwhile, the number of investors who are optimistic about the US economy has dropped to 30%. At the beginning of January, this figure is 68%. For comparison, about 55% of Asian investors have an optimistic outlook. Positive prospects for the 6-month period of US stocks are also falling sharply than all other regions.
"The optimism of short-term investors across the globe has dropped significantly. It seems to coincide with the evolution of the epidemic. In Asia, where the Covid-19 crisis started and is now under control. "In Europe and the US, investors are more optimistic. On the contrary, optimism is low in the US, the largest Covid-19 outbreak worldwide," said Paula Polito, senior leader of UBS Global. Wealth Management, share.
Nearly half of the participants said they adjusted their stock holdings. 37% said they plan to invest more while 16% sharply reduced the number of shares.
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