Despite the uncertainty surrounding the UK’s withdrawal from the EU, most of the country’s wealthy people still have a positive outlook on the country’s economy, according to a new survey.
In the recently released UBS Global Wealth Management study, more than 60% of the 338 of the 3,600 global investors and business owners with a minimum of $1 million in investable assets surveyed said they felt optimistic about the British economy over the next decade. At the same time, 44% had a rosy outlook for the next 12 months.
Meanwhile, 41% said they believed that Brexit would generate a positive effect on the U.K. economy compared with 35% saying it would have an adverse impac12t. The remaining 24% of respondents believed the country’s withdrawal from the EU would have a neutral impact on the economy.
One of the prominent investors expressed his optimism on Britain is the billionaire Warren Buffet. The Berkshire Hathaway chair and CEO said in his speech at the company’s annual stakeholders meeting in Omaha, Nebraska, that he would love to pour money on the country once the Brexit takes place.
Despite facing the challenges posed by the impact of domestic political and market factors on the UK wealthy’s investment and companies, the survey shows that UK investors and entrepreneurs have a more positive mindset than at the end of 2018, Mark Goddard at UBS Global Wealth Management said.
While the optimism of UK investors and business owners might be good news the country’s politicians, UBS financial strategists also urged the investors to expand their portfolios globally. UBS warned, in a research note, that bullishness in their home market must not be translated into “home bias.”
James Mulford, U.K. Mandates and Investment Content Head at UBS Global Wealth Management, said home bias makes portfolios susceptible to risks in domestic issues and politics whereas investments that are diversified internationally often produce better returns over the longer term.