Investors around the world are contemplating changes to
their portfolios in anticipation of the US election, according to a new survey
from UBS.
The world's largest wealth manager polled over 4,000
investors and business owners and found that 72% of investors are considering
adjusting their holdings before Election Day. Sixty-two percent of investors
intend to make further changes depending on the result.
Sixty-six percent percent of investors surveyed said they
are considering allocations to the healthcare sector over the next six months,
while 62% are looking into 5G networks, and 56% are considering investments
based on a "green recovery."
The individual investors surveyed had at least $1 million in
investable assets, and the business owners had at least $1 million in revenue
and at least one other employee.
Only 29% of investors said they wanted to reduce the level
of risk in their portfolio.
The survey also asked investors their preferred winner of
the election. In the US, investors were evenly split. Fifty percent said they
preferred Trump, while 50% said they preferred Biden. In Asia, Latin America,
and Europe, a majority of investors said they preferred Biden.
Investors also demonstrated a preference toward placing
their holdings in their own country. Fifty-five percent said they considered
their home region an "attractive investment." But Iqbal Khan, UBS
Global Wealth Management co-president, cautioned investors against placing too
many assets in just one country.
"Amid uncertainty over the US election and COVID-19, investors
appear to be more positive on their own region than on the world at large. In
the period surrounding the election, we believe they should diversify globally
and avoid falling prey to their own home bias," Khan said.
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