Confidence Has Returned To Investors in Wake of Trump’s Election
$SPY, $DIA, $UBS
Just 2 weeks before the US Presidential election, 50% of wealthy investors were fearful of turmoil in the stock markets. Many either pulled some of their money out or moved it into more conservative investments, according to a survey by UBS Wealth Management Americas.
About 33% increased their cash holdings, and missed out on one of Wall Street’s most profitable rallies in years.
When UBS surveyed the same 1,200 wealthy investors during the week after the November 8 election, optimism spiked with more than 50% of investors saying they expect positive returns from the S&P 500 over the next 6 months.
“The fear of the event was greater than the outcome of the event from a financial markets standpoint,” said the President of UBS Wealth Management Americas. “It was an emotional decision.”
The group surveyed was split between 33% Donald Trump supporters, 33% Hillary Clinton supporters, and 33% of participants who declined to say who they voted for.
After the election, 9 out of 10 investors said that Washington needed to change, and 2 out of 3 people said they believed Donald Trump to be a catalyst for change.
Wealthy investors preferred Donald Trump to his Democratic rival Hillary Clinton overall when it came to tackling their Top 3 concerns:
- the economy
- national security.
And 33% of all wealthy investors said they expect to pay less taxes in the Trump Administration
Donald Trump’s supporters were the most Bullish about the economy after the election, as 33% said they plan to increase their investments in the stock market and 25% expect they will increase personal spending.
More than 50% of Hillary Clinton supporters said the opposite, with 56% fearing an economic recession and 28% reporting they are increasing their cash holdings.
And 4 in 10 investors said they plan to change their portfolios based on their political preferences.
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Have a terrific weekend.