September 28, 2020

Investors favor Trump for the economy and Biden for managing COVID-19, the world’s largest wealth manager says

  • Investors favor US President Donald Trump to support the economy, and presidential nominee Joe Biden to manage COVID-19 effectively, wealth manager UBS found in a survey.
  • A majority of wealthy investors said Biden would get their vote, while business owners said they would prefer a Trump reelection.
  • Business owners have become more confident as their hiring intentions have risen since the pandemic-induced layoffs that began in March. 
  • Investor sentiment towards the short-term market outlook has improved, with 50% expressing optimism on stocks compared to just about 44% in July, UBS said.
  • Visit Business Insider’s homepage for more stories.

Investors favor US President Donald Trump for economic direction and job growth, and Democratic candidate Joe Biden to manage the COVID-19 downturn, foreign policy, and healthcare, a survey by UBS found.

At the same time, investors are split on who among them will get their vote. 51% wealthy US investors said they would vote for Biden, while 49% said they would choose a Trump reelection, the world’s largest wealth manager found in an “Investor Watch Pulse” survey on the US election.

UBS polled 947 investors and 448 business owners in the US with at least $1 million in investable assets. Respondents’ main concerns around the election revolved largely around the economy and controlling the coronavirus pandemic. 

On the other hand, business owners remain strong supporters of Trump, with 53% saying the Republican candidate would get their vote.

Business owners have become more confident as their hiring intentions have increased since March, UBS said, when pandemic-related distress forced small businesses to cut jobs drastically.

Read More: Fred Stanske uses the insights of Nobel winner Richard Thaler, the ‘father of behavioral finance,’ to beat the market with under-the-radar stocks. Here’s how he does it – and 2 picks he’s buying for long-term gains.

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UBS’ wealth management arm, which has around $930 billion in assets under management, said investor sentiment towards the short-term market outlook has improved, with 50% expressing optimism on stocks compared to just about 44% in July, and 48% pinning their hopes on the US economy versus 41% in July. 

Their top concerns were found to be politics, the presidential election, national debt, and the pandemic. 

Beyond the election, top business concerns largely focused on civil unrest and higher business taxes.

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If the pandemic continues to pose high risks at the time of the election, most investors support mail-in voting across all states, UBS found. 40% of those surveyed said they would vote by mail.

A majority said they expect the impact of the pandemic to last into 2021 or beyond, and are willing to pay higher taxes for certain benefits such as spending on infrastructure, lower national debt, and greater health coverage.

Read More: 4 experts break down the drivers behind the sudden plunge in tech stocks that’s dragging the entire market lower – and share their best recommendations for what investors should do as the election approaches

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