A majority of the worlds richest investors expect a significant stock sell-off in 2020, UBS survey finds

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• The world’s richest are bracing themselves for a turbulent 2020.
• UBS Global Wealth Management assessed 3,400 of its wealthiest investors.
• In 2020, 79% expect more volatility and 55% see “a significant drop in the markets” by year-end. 
• The US-China trade conflict came out as a top concern for investors.
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The worlds richest are bracing themselves for 2020, with the majority believing that markets are due a big drop by the end of the year. 

That’s according to a report from UBS Global Wealth Management, which assessed 3,400 of its wealthiest investors  to gauge their thoughts on the future.

In the survey of the investors across 13 markets, each owning more than $1 million in “investable assets,” 79% expect more volatility in 2020 and 55% see “a significant drop in the markets” by year-end. 

Most of the concerns were coming from instability in government — 66% felt that markets were being driven more by geopolitical events — with the US-China trade conflict the top concern. Just over a third cited the US election as a concern. 

About 60% said they would consider increasing cash holdings, even though 25% of average assets were already in cash form. 

“In a world that is increasingly connected, the impact of geopolitical events — such as the global trade conflict, the upcoming US presidential election, Brexit, political discord in multiple regions — is weighing on investors globally, causing the majority to feel uncertain,” UBS said in the report.

“Business fundamentals that once were the backbone of how investors think about the market are now being usurped by a confusing geopolitical landscape. As a result, investors are now less likely to act,” UBS added.

That said, there was some optimism. In the long term, 69% of global investors felt positive about return on investments in the next 10 years, particularly those in Latin America. 

Younger investors, particularly those aged 18 to 34, were much more keen on sustainable investing (83%), and the same age group were keen to embrace change (71%).