Investors have kept their cash piles high even after markets and the economy strengthened in recent months, as many search — or wait — for the right buying opportunity in stocks, a UBS Group survey found.
UBS polled 2,850 investors globally, with at least $1 million in investable assets, from March 30 to April 18. The survey included investors who are not clients of UBS UBS, -1.04%, according to a spokesperson for the Swiss bank. Seventy percent of U.S. investors are optimistic about their local economy, rising from 52% three months ago, the survey found.Seventy-one percent of U.S. investors expressed optimism about the stock market, up from 59% three months ago. The U.S. stock market has risen to record levels this year, with the S&P 500 SPX, -0.02% and Nasdaq Composite COMP, -0.34% reaching new highs this week amid earnings season.
They’re focused as well on diversifying into areas that initially lagged during the pandemic — such as consumer discretionary, energy, industrials and financial services — but can “carry the expansion now and extend the rally,” said Ryan. Too much inflation would prompt them to move out of cash, according to UBS. Forty-one percent of investors would increase their holdings of stocks in such a scenario, while 31% told UBS they would add to their real-estate positions.
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Why would you keep your savings in cash to avoid inflation?