Investors are split on which US presidential candidate will be better for the economy with the majority considering making changes to their portfolios ahead of polling day, according to a new survey from UBS.
According to the bank’s latest Investor Watch survey, 49% of investors prefer Democratic candidate Kamala Harris for the economy while 51% say Republican candidate Donald Trump will do better on this issue.
Business owners, meanwhile, feel Trump is slightly better for the economy at 55%, with 45% preferring Harris.
57% of investors and 47% of business owners plan to vote for Harris, while 43% of investors and 53% of business owners are backing Trump.
The survey also showed that investors feel more optimistic than four years ago, during the leadup to the last US election, with 55% “highly optimistic” about the US economy compared to 43% in 2020.
Almost three-quarters (74%) are highly optimistic about their portfolio returns in the next six months, up from 57%.
There was also positive sentiment among business owners, with 74% saying they are optimistic about the next 12 months, up from 68% in 2020.
“The economy is clearly a top concern, both among investors and business owners. It’s encouraging to see a general increase in optimism as we navigate the volatile market landscape in an election year,” said Rob Karofsky, Global Wealth Management co-president.
Amid this increased optimism, a greater percentage of investors are considering making changes to their portfolio ahead of the election at 77%, compared to 63% four years ago.
Anticipated changes include adjusting sector allocations (38%), adding portfolio protections or hedges (35%), increasing investments (34%) and increasing cash holdings (34%).
They consider healthcare, sustainable investing and technology as the most attractive sectors if Harris is elected, while defense, energy and industrials are more attractive in the case of a Trump victory.