How Billionaires Got $637 Billion Richer During The Pandemic
Nearly half of the world’s wealthiest investors and business owners expect their stock portfolios to remain at the same level over the next six months, even as the coronavirus pandemic is plunging the global economy into chaos, according to a study by UBS..
A Swiss bank’s quarterly global survey found that 47% of 4,108 people surveyed expect to keep their stock market investments at current levels, and 37% plan to invest more in stocks over the next six months..
UBS conducted a survey of wealthy investors and business owners in 14 markets in April and released the results on Wednesday.
Nearly a quarter (23%) said it was a good time to buy stocks, and another 61% said they would buy if the stock fell another 5-20%.
While only 46% expressed optimism about the short-term economic outlook for their respective regions, 70% of respondents are optimistic about the long-term outlook..
The decline in short-term optimism was the sharpest in the US, falling from 68% in the fourth quarter to just 30%, while Europeans (excluding Switzerland) saw the smallest fall in sentiment, from 58% to 50%..
«Ninety-six percent of investors globally say COVID-19 has influenced their lifestyle in some way, with more than half mentioning social distancing practices, avoiding crowds and avoiding travel, UBS Wealth Vice Chair said in a statement. Management Paula Polito. – However, they disagree on when the worst phase of the crisis will end, with one third for the end of June, one third for worsening, and one third for the end of the year or beyond.».
As of Wednesday evening, the virus has infected at least 3.1 million people worldwide and has killed at least 217,000..
Governments and central banks around the world have deployed unprecedented fiscal and monetary stimulus packages in an effort to bolster their economies against the expected impact as extended shutdowns lead to weaker demand and economic activity.
On Wednesday afternoon in Europe, the pan-European Stoxx 600 index was down almost 18% YTD, while in the US the S&The P 500 is down about 11.4% and the Dow Jones Industrial Average lost just over 15.5%. The survey found that among business owners, 61% are optimistic about their business, up from 73% in the previous survey, while 27% plan to hire more employees versus 17% plan to layoff..