Long-term investor optimism is up, with more than seven in 10 calling the economy’s fundamentals “strong,” according to a new investor and business survey.
The latest UBS Investor Watch Pulse Poll found that 71 percent are more optimistic about the 10-year economic outlook than they were just two months ago when it was still a high 68 percent.
And, said UBS, 78 percent believe the economy’s fundamentals are “strong,” and 75 percent said they expect to reach their long-term goals.
However, short-term expectations in the economy have taken a hit amid concerns about President Trump’s trade policies and Wall Street’s year-ending dip.
The 12-month and shorter outlook has sunk to 38 percent, down from 61 percent in November, said UBS.
Despite that, investors must see it as a temporary lull because 95 percent said that they are sticking to their investment plan.
Sameer Aurora, UBS sead of strategic programs, told Secrets, “Our findings show that High Net Worth Investors have become concerned by recent gyrations like everyone else but the silver lining is that they understand the fundamentally strong long-term view — in fact they are more optimistic about the economy over the next years than they were last Fall.”
And business owners, he said, “are more resilient – while their optimism has dipped moderately, they still expect robust growth over the long-term.”
The poll was the first to take the pulse of investors and business amid the government shutdown, which has prompted the administration to cut back on the size of its delegation to the World Economic Forum in Davos, Switzerland.
Businesses, meanwhile, remain positive, though slightly less than they were a few months ago.
Still, when it comes to spending, 27 percent of business owners are planning to hire in the coming year, compared to 5 percent looking to cut staff. An equal percentage plan to invest, versus 9 percent who plan to cut investments.
