Tech and healthcare remain top focus for cash says UBS

Wealth management firm's global survey also shows sentiment remains good despite challenges of inflation and rate hikes

Tech and healthcare remain top focus for cash says UBS
Steve Randall

Six in ten investors with cash to invest consider technology and healthcare sectors the most attractive according to a global survey from wealth manager UBS.

The firm’s latest quarterly barometer of investor sentiment shows that the two thirds of respondents hold at least 10% of their portfolio in cash but almost half of those are holding back for “the right opportunity.”

“With the effects of COVID-19 expected to impact the healthcare industry for years to come and a shift to a more digitalized world, investors see further opportunities in these sectors,” said Iqbal Khan, co-president of UBS Global Wealth Management. “However, given high levels of inflation and interest rate hikes on the horizon, investors are waiting for the right moment to put their money to work.”

The survey of more than 3,000 individual investors and 1,500 businesses across 15 markets also found that inflation around goods, fuel, and energy prices is concerning with many believing that inflation will remain elevated for more than 12 months.

Despite the challenges, business owners are generally confident with 44% planning to hire and around half intending to invest in their businesses.

Sixty-nine percent are offering increased flexibility in working hours and 67% are offering increased flexibility in where their employees can work.

Amid the market volatility, US investors are considering adding stocks and portfolio hedges, putting cash to work, and borrowing ahead of potential rate rises, in the form of new and refinanced mortgages, and security-backed loans.