Confidence Has Returned To Investors in Wake of Trump’s Election

Confidence Has Returned To Investors in Wake of Trump’s Election

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.

The Dow surged to record highs on Republican Donald Trump’s victory, and the S&P 500 financial index had its best week since October 2014.

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:

  1. the economy
  2. healthcare
  3. 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.

HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.27) Neutral (0.21) Bullish (0.44) Neutral (0.16)
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Bullish (0.33) Bullish (0.28) Bullish (0.33) Bullish (0.36)

Have a terrific weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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