Wealthy investors are “deeply concerned” about the impact of the war in Ukraine and are likely to make changes to their portfolios if financial markets continue to slide, according to a new survey from UBS.
The Investor Sentiment Study, which surveyed more than 2,500 high net worth investors and 1,000 business owners in 14 markets around the world, found that many are now more likely to move or increase their gold holdings , domestic stocks and oil.
Investors still see technology and energy as the main sectors to invest in, while those who own companies are not hiring and investing aggressively and instead focus on higher social benefits, expenses IT and talent upgrading.
“Investors around the world are clearly concerned about the personal and economic impacts of one of the biggest humanitarian crises in decades,” said Iqbal Khan, President of UBS Europe, Middle East and Africa and Co-Chairman of UBS. Global Wealth Management.
Among investors polled for the study, 92% said they expected the war in Ukraine to fuel higher inflation, with more than half expecting inflation to last longer than a year. The majority (66%) also expect higher energy prices, while 64% foresee greater global instability and 60% are worried about more cyberattacks.
Among business owners, concerns have risen, with geopolitical instability adding to rising material costs, tax increases, tighter regulations and supply chain issues. As a result, confidence in their own businesses for the next 12 months fell by 11 percentage points.
“The impact of the war in Ukraine and rising inflation have forced business owners to once again adapt to an unprecedented and unpredictable situation, after dealing with the effects of the pandemic on their business,” said Tom Naratil, chairman of UBS Americas and co-chairman of UBS Global Wealth Management.
(Reporting by Cleofe Maceda; editing by Seban Scaria)