Investors with large net assets are deeply concerned about the impact of the war in Ukraine on the world economy and deteriorating inflation, according to the new quarterly survey on investor sentiment and sentiment released by UBS, the leading global wealth management group. Of 2,500 investors and 1,000 business owners in 14 markets worldwide, 92% of investors expect the war to increase inflation, and more than half believe that high inflation will continue over 12 months.
Half of the investors surveyed believe that market volatility is higher than usual. Most investors expect the war to have a negative impact on the economy, as 66% of them expect energy prices to rise, while 64% believe that instability will worsen at the global level, and 60% expressed They are concerned about the escalation of cyber attacks.However, investors have not yet adjusted their portfolios, but they are preparing to do so if the market continues to decline.Many investors are currently considering gold for sale. local equities and oil, while the technology and energy sectors remain among the most attractive sectors in the current market environment.
“Global investors are clearly concerned about the impact of one of the biggest humanitarian crises in decades, both personally and economically,” said Iqbal Khan, UBS President for Europe, Middle East and Africa and co-chair of UBS Global Wealth Management. “The long-term economic consequences of the war in Ukraine, most investors are optimistic about the prospects for stock markets and feel confident about their diversified portfolios.”
Business owners have become increasingly concerned in the current quarter due to geopolitical instability, as well as rising material costs, higher taxes, stricter regulations and supply chain problems. As a result, their confidence in their business fell by 11% over the next 12 months. Business owners tend to adjust the pace of hiring and investing plans, focusing on increasing employee benefits, spending on information technology, and improving skills.
“The impact of the war in Ukraine and worsening inflation have once again forced business owners to adapt to an unprecedented and unexpected situation, after having to deal with the effects of the pandemic on their businesses,” said UBS President for Northern and Latin America and UBS Global Wealth Management Tom Naratel “In a limited labor market, employers are working closely with their financial advisors – such as UBS’s Workplace Wealth Solutions – to improve employee well-being and value-added benefits,” he said. said.
In the US, short-term investors’ optimism about the US economy and the stock market has increased since the last quarter, both rising by 4% to 58%. However, planning for more investment over the next six months increased slightly by 3% to 33% Geopolitical risks became a major concern alongside politics, followed by inflation, with 6 out of 10 investors worried about the war in Ukraine and the impact of it on their portfolio.
In Latin America, short-term optimism increased by only 2 percentage points to 60%, and 61% of Latin American investors were optimistic about the outlook for equities in their region. More than half of the surveyed investors plan to invest more in the following. six months (56%).
Europe (eg Switzerland)
In Europe, just over two-thirds of the investors surveyed maintained their optimism about their region’s economy in the short term. However, optimism about their region’s equities outlook fell by 4% to 63%. About half of European investors plan to invest more in the six. months The forthcoming survey (46%), which represents a decrease of 3% compared to the previous survey
In Switzerland, optimism about the Swiss economy returned in the short term to levels recorded in 2020, and only 33% of investors were optimistic during the current quarter, compared to 68% recorded in the previous quarter. This decline in optimism was also reflected. in their view of local equities.41% of them expressed optimism about it, compared to 68% recorded in the previous quarter.The planning to invest over the next six months also declined as 24% of them plan to invested, which is a 6% decrease compared to the previous quarter.
In Asia, investors remain optimistic about the outlook for equities over the next six months in their region, as well as the economy as a whole.45%), but this concern has widened in the Asia-Pacific region (47% during the current quarter compared to 51% recorded in the previous quarter).