Confidence rebounds for
wealthy investors after U.S. election: study
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[November 17, 2016]
By Elizabeth Dilts
NEW
YORK (Reuters) - Two weeks before the U.S. presidential election, half
of wealthy investors were so fearful of turmoil in the stock markets
that they either pulled some of their money out or moved it into more
conservative investments, according to a survey by UBS Wealth Management
Americas.
Roughly a third of people increased cash holdings, and missed out on one
of Wall Street's most profitable rallies in years. The Dow surged to
record highs on Republican Donald Trump's surprise victory, and the S&P
500 financial index had its best week since October 2014.
When UBS surveyed the same 1,200 wealthy investors during the week after
the Nov. 8 election, optimism had surged with more than half of
investors saying they expect positive returns from the S&P 500 over the
next six months.

"The fear of the event was greater than the outcome of the event from a
financial markets standpoint," said Tom Naratil, president of UBS Wealth
Management Americas. "It was an emotional decision."
The group surveyed was split between roughly one third Trump supporters,
one third Clinton supporters, and one third of participants who declined
to say who they voted for.
After the election, 9 out of 10 investors said that Washington needed to
change, and 2 out of 3 people said they believed Trump would be a
catalyst for change.
Wealthy investors preferred Trump to his Democratic rival Hillary
Clinton overall when it came to tackling their top three concerns: the
economy, healthcare and national security.
One third of all wealthy investors said they expect to pay less for
taxes.
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Traders work on the floor of the New York Stock Exchange (NYSE) in
New York City, U.S., November 14, 2016. REUTERS/Brendan McDermid

Trump supporters were the most bullish about the economy after the
election, as 33 percent said they plan to increase their investments in
the stock market and 25 percent expect they will increase personal
spending.
More than half of Clinton supporters said the opposite, with 56 percent
fearing an economic recession and 28 percent reporting they are
increasing their cash holdings.
Four in 10 investors said they plan to change their portfolios based on
their political preferences.
(Reporting By Elizabeth Dilts; editing by Grant McCool)
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