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This Is The Most Unpredictable Time In Our History, 82% Of Millionaires Believe

This Is The Most Unpredictable Time In Our History, 82% Of Millionaires Believe
According to a new study by Swiss bank UBS on Wednesday, the current period is the "most unpredictable" ever, thinks the vast majority of millionaires across seven international markets.
With each millionaire having at least $1 million in investable assets (excluding property),
a total of 2,842 high net worth individuals were interviewed for the study in the U.K., Italy, Switzerland, Japan, Hong Kong, Singapore and Mexico. With 90 percent agreeing that we're currently living through the most unpredictable period in history, Mexican millionaires topped the list. Corruption was the biggest domestic issue raised in Mexico.
With 84 percent of Singaporean millionaires holding this view and highlighting the risk of greater trade barriers, Singapore came narrowly behind, according to the UBS Investor Watch 2017 report. However, when assessing financial risks and making appropriate investment decisions, they were more confident than their Hong Kong and Japan counterparts.
The confidence of Singapore has been boosted by property prices and prospects.
Confidence was boosted by their ability to find safe places to invest in an uncertain environment for Singaporean millionaires in particular, the report showed.
"Property is usually a key focus point in the region and it seems that Singapore is turning more positive whereas in Hong Kong, the authorities are still trying ensure better affordability," said Hartmut Issel, head of equity and credit APAC and a chief investment officer from UBS Wealth Management.

"(The) property market can often swing the picture."

According to the survey, while more than two-thirds said the domestic market offers security for their money, eight out of 10 Singaporean millionaires find the local property market still remains attractive. Even while UBS warned on the dangers of the belief that cash was a safe option as pointed out by the Singaporean millionaires, 7 out of 10 of them believed so.
"I think there's work to be done for wealth managers in Singapore to at least put the context that while cash is always safe, it is also important to know that you have opportunity costs and inflation so it is not quite as safe as perceived," said Issel.
The main source of domestic uncertainty for the Singaporean millionaires arises from the risk of greater trade barriers although domestic politics are seen as a stabilizing force in helping Singaporean wealth holders to feel more secure about their financial future. A concern to an improving global economy was the overarching theme of rising protectionism.

"In terms of policies, their main concern is around trade. This correlates as Singapore is a very wealthy and open economy so if something happens on the trade side, historically it will affect the most open economies," noted Issel.

In contributing to the confidence of navigating through the noise of uncertainty, the survey highlights emerging trends of entrepreneurism and technology.
"Singapore millionaires stand out by a few percentage points (in) each category by being more willing to embrace technology and think big data could be helpful to make sense of this uncertainty," added Issel.

Christopher J. Mitchell

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