US election could see 25% pull out of stock market

UBS survey finds majority of US investors see the presidential election as ‘game-changing’.

A quarter of investors in the US have said they would consider pulling out of the US stock market altogether, following the presidential election.

UBS’ ‘investor watch’ – a quarterly report on issues affecting the stock markets – found via a survey it conducted that investors in the US have “serious concerns” over the outcome of the upcoming election.

The poll of over 2,000 investors, discovered a significant 77% of respondents believe the presidential election is a “game-changing” event that will have a major impact on the direction of the country.

Paula Polito, client strategy officer of UBS Wealth Management Americas, said investors see the economy as the biggest issue in the election.

The economy outranks concerns like healthcare, national security and foreign policy - “where investors diverge among party lines is on what it will take to fix the economy”, Polito added.

Three quarters of respondents expressed nerves over the outcome, regardless of which candidate wins.

Sameer Aurora, head of client strategy for UBS Wealth Management Americas, concluded the uncertainty surrounding the election has seen 10% of investors reallocating their portfolios, with a further 57% considering doing the same.