Report: 40% of Americans out of market pending debt deal

An overnight poll conducted by UBS Wealth Management Americas (WMA) among 1,000 clients and investors nationwide has revealed the negative impact the continuing impasse on the US debt ceiling is having on investor sentiment – with 40% of respondents saying they are looking for the resolution of the US debt ceiling issue as a key signal before they will put money back into the markets.

The UBS WMA survey also reveals a negative trend on concern about the nation’s debt. When asked what worries them in terms of potential impact on their financial goals, 65% of investors cited the size of the US debt, up from 59% in April. Also, 40% of respondents are highly worried about the country defaulting on its debt.

“Whether we’re talking to and advising a corporate chief executive, a high net worth investor or a small business owner, it’s clear that uncertainty over the US debt has frozen everyone in their tracks when it comes to actively participating in the market,” said Robert J. McCann, UBS WMA Chief Executive Officer. “What our clients need now is someone they trust to help them navigate this uncertainty and help them understand the issues affecting this economy.”

The poll also pinpoints a dramatic reversal in positive investors’ outlook on the economy three months ago. A similar poll in April showed 53% of respondents to be optimistic about the short-term outlook for the US. economy, while 27% remained pessimistic. Today’s survey reveals that 60% are now pessimistic about the outlook, while 21% are optimistic.

UBS WMA conducts regular polling of investor sentiment. Today’s survey was conducted online by Research Now on behalf of UBS among 1,000 investors from July 27-28, 2011. Respondents have at least $250,000 in investable assets (excludes real estate and private business assets), with 50% of respondents having at least $1,000,000 in investable assets.

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