Investors globally are increasingly upbeat about prospects for the stock market, according to a survey of high-net-worth investors carried out by UBS.
“Strong demand for goods and services (46%), returning to normal after COVID-19 (43%) and strong corporate earnings (41%) top the list as to why some investors believe that there’s hope on the horizon, even amidst a challenging market backdrop,” said the Swiss bank.
Inflation, recession and geopolitical risk are the main concerns and were flagged by just over half of the 2,900 investors and 1,400 business owners surveyed.
Half have reduced spending because of their fears, with 31% also cutting back on saving while others are shifting their investment strategy to include more cash due to the likelihood of interest rates rising.
UBS added it getting more requests for advice on what to do, especially for market opportunities (74%), how to manage volatility (74%), how to generate yield (73%) and tax optimization (73%).
Requests for advice on borrowing are growing the fastest, added UBS.
Business owners, too, were reasonably upbeat with 72% of those questioned optimistic about the next twelve months though to manage costs, 46% said they were switching to cheaper suppliers 45% are raising prices.