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Investor Optimism Levels Soar In Anticipation Of Trump's US Takeover - UBS WM Report

Josh O'Neill Assistant Editor January 19, 2017

Investor Optimism Levels Soar In Anticipation Of Trump's US Takeover - UBS WM Report

It appears that Trump's rise to power is music to investors' ears.

Investors' optimism levels have reached their highest point since the 2008 financial tsunami in anticipation of President-elect Donald Trump assuming office, with investors citing pro-business policies and more lax regulation as driving forces, according to a new UBS Wealth Management report.

The Swiss bank's Investor Watch Report surveyed 2,025 US-based high net worth investors between December 20 and 27, 2016. All respondents had at least $1 million in investable assets.

Some 71 per cent of investors cited hotel tycoon Trump's pro-business policies – including lower personal and corporate taxes – as the reasoning behind their optimistic outlook.

Expectations of less regulation and increased infrastructure spending was reported by 69 per cent of investors as propellants for US economic growth and, therefore, as the primary sources of their optimism.

UBS' report found that investors' outlook on the economy had improved by 50 per cent since Trump was elected. Additionally, 68 per cent of respondents said they expect Trump's policies to lead to strong stock market returns over the next six months.

As a result of this revived optimism, the majority of investors, or 55 per cent, said they are actively seeking investment opportunities, up from 34 per cent immediately following the election.

“After years of caution following the financial crisis, we are finally seeing the tide turn. Investors are more willing to move cash off the sidelines and increase investments, while business owners are set to increase capital spending and hiring," said Paula Polito, client strategy officer of UBS Wealth Management Americas, adding: "If the recent optimism continues, it will bode well for the markets and the economy.”

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