Wealthy investors are getting ready to sell out their shares as they are expecting the global markets to crumble next year, according to the Swiss bank UBC.
The bank conducted a survey in the period between August and October, which involved 3,400 people with an investment portfolio starting at $1 mio. Most of the investors plan to sell some of the shares, thus increasing the share of the financial assets in their portfolios. Investors currently keep only 25% of their assets in cash.
Almost all investors (80%) expect that the market volatility will increase. At the same time, 72% of respondents say that the current investment market situation is worse that it was five years ago. 66% of respondents believe that the current unpredictable geopolitics has a great influence on the market.
Most business people are afraid of another escalation of the trade war between the US and China, Bloomberg reports. Some millionaires are concerned that markets will enter the turbulence zone against the backdrop of the US presidential election. Some of them worry about economic shocks due to Brexit.