A survey of high net worth US investors, conducted in December, showed that the election of Donald Trump has prompted more optimism about the economy and markets.

A survey of investors by UBS in the Americas shows they have become far more optimistic about the outlook for the economy since Donald Trump was elected.

UBS Wealth Management Americas’ Investor Watch Report, says optimism is at the highest it has been since the 2008 financial crisis.

Investors cited Trump’s pro-business politics, such as the promise of lower personal and corporate taxes, as reasons for being upbeat, because of the positive impact they think these policies will have on the economy.

Some 68 per cent of investors said they expect Trump’s policies to lead to strong stock market returns over the next six months. As a result, the majority of investors (55 per cent) are actively looking for investment opportunities, up from 34 per cent immediately following the election, with 42 per cent likely to increase their investments in the stock market and nearly one-third of wealthy investors (30 per cent) ready to deploy cash, the survey showed.

"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 WMA. "If the recent optimism continues, it will bode well for the markets and the economy,” Polito added.

Investors’ outlook for the stock market is more optimistic than it is for the economy.

Trump supporters are more likely than Clinton supporters to be optimistic about S&P 500 returns in the next six months (90 per cent vs. 44 per cent), stock market optimism across party lines has increased from 25 per cent before the election to 68 per cent in January, the report said.

Trump supporters’ economic outlook has improved from 25 per cent prior to the election to 79 per cent post-election. Clinton supporters’ confidence declined immediately after the election (34 per cent, down from 57 per cent prior to the election), but has since started to recover (41 per cent now).

The vast majority of Clinton supporters continue to be wary of Trump’s unpredictability (87 per cent) and his potential business conflicts (80 per cent), and the impact they can have on social issues and America’s standing in the global competitive environment.

UBS took responses from 2,025 high net worth investors responded, in a period from December 20 – 27 last year. All respondents have at least $1 million in investable assets, including 412 with at least $5 million. With 81 survey respondents, we conducted qualitative follow-up interviews.