UBS Wealth Management’s latest study has found that in Switzerland 77% of high net worth individuals believe we are in the most unpredictable period in the history of the world.
This is lower than the 82% of global peers who hold the view about the current environment’s predictability.
The UBS study surveyed more than 2,800 high net worth individuals globally, of which 400 were in Switzerland.
Nearly three quarters of those asked said they are suffering from an information overload and are making decisions amid uncertainty.
This can in part be put down to social media. Only 18% believe it improves the world’s predictability, which differs from the 41% who believe artificial intelligence can make the world more predictable.
This goes some way to explaining why 70% admitted that short-term distractions and unforeseen events keep getting in the way of their financial plans.
Despite the worries and concerns caused by unpredictability, just over half of Switzerland’s millionaire community is optimistic about the wider economy, with 53% feeling positive about the global economic outlook over the next 12 months.
This view ranked Switzerland as the second most optimistic nation in the world according to the report’s findings.
This confidence can be put down to the security Swiss partakers feel within their own market, as 78% said they could find safe places to invest in their domestic market during uncertain times.
Even so, currency concerns remain prominent, with 70% of Swiss respondents worried about the volatility of the Swiss Franc.
Commenting on the findings, Daniel Kalt, UBS chief economist Switzerland and regional chief investment officer Switzerland at UBS WM, said: ‘Some people would argue the world is easier to predict than ever. The worlds wealthy clearly feel the opposite.
‘In response, we see evidence of short-termism creeping in, people reacting to each event as uncertainty grows.
‘Investing on your own doorstep can be tempting in this climate. Holding on to cash can feel safer, even as it erodes your wealth in real terms. Although confidence remains high, neither approach is likely to work well in the long term.’