As noted in the blog post below, UBS interviewed “wealty” investors to get their opinion on the economy. Here is their finding.
A long-term perspective appears as critical as ever. The vast majority of investors expect markets to be volatile in the next six months and believe the economy is fragile, but their long-term outlook remains optimistic. Six in 10 investors have an optimistic long-term economic outlook compared with only 17% having a pessimistic view. And they continue to feel very good about their personal fnancial situation (64% feel their fnancial situation is excellent or very good).
In addition, the recent market volatility brought on by the impending Fed action to end the stimulus did not impact long-term investors’ psyche or investing behavior, as they believe any actions will ultimately stabilize the economy in the long run. Fify-one percent of investors expect this change to have a negative short-term impact on the economy but will stabilize the economy in the long run. Only 9% expect this to have a negative long-term impact. The majority of investors (59%) are not changing their investment strategy as a result of the Fed announcement. Regarding timing, investors expect the Fed to start pulling back on the stimulus in late 2013 or early 2014, and end the program in late 2014 or in 2015.