Wealthy investors are taking a wait-and-see attitude when it comes to stocks.
A poll by UBS Global Wealth Management found that the majority of the world’s wealthiest investors are waiting for stocks to drop further before buying. Among surveyed investors and business owners with at least $1 million U.S. in investable assets or annual revenue, 61% want to see equities fall another 5% to 20% before buying, while 23% said it’s already a good time to purchase equities. Another 16% of people said that now is not the time to load up on stocks.
High net-worth individuals are cautious on risk assets as 60% said a global recession is highly likely to occur in the next 12 months, the April poll by UBS showed. While equities have rallied more than 20% from March lows, they remain well below their 2020 highs recorded in February. A separate survey by Bank of America Corp. (NYSE:BAC) found that cash positioning is at the highest level since the 9/11 terrorist attacks on the U.S.
Almost half of the poll participants said they don’t plan to adjust their stock holdings and 37% plan to invest more money, whereas only 16% said they are decreasing their investments. UBS surveyed 2,928 wealthy investors and 1,180 business owners between April 1 and April 20.
