Political uncertainty and geopolitical risks have kept wealthy investors out of the stock market’s rally of new highs. “Now’s the time for them to jump back in and take advantage of the gains still to be made”, say the people looking after their cash.
Mr. Burkhard Varnholt, Deputy Chief Investment Officer of Credit Suisse, said “Whenever it feels really difficult and challenging to put money at work, ultimately those are often the better investments. That sense of skepticism, that wall of worry, which is still there, to me is not a discouragement.” Zurich Insurance Group, Switzerland’s biggest insurer, said “Underneath that, we have a pretty benign macro environment that shows a recovery, good consumer and business confidence. There are a lot of other positive economic trends.”
The private clients of U.B.S. and Credit Suisse are now listening. Their high net worth retail investors are now buying the market. Institutional money skipped the “Trump Rally” and have been net sellers for the past 12 months. Hedge funds are now net sellers over the last few weeks.
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