Most traders who’ve at the very least $1 million in investable belongings are planning to vote for Vice President Kamala Harris, per a new report from wealth supervisor UBS. The precise breakdown: 57% of the 971 U.S. traders UBS surveyed final month mentioned they’re choosing Harris; 43% are planning on Trump.
And but, those self same traders say former President Donald Trump would really be higher for the economic system—narrowly. UBS surveyed 971 U.S. traders concerning the election final month; 38% are Republicans, 34% are Democrats, and 26% are Independents.
Almost all of the respondents mentioned the economic system is their major concern as they head to the poll field. In second place was Social Safety, adopted by taxes and immigration.
Amongst millionaire Democrats, Harris captured 91% of the vote; 88% of millionaire Republicans mentioned they’re going for Trump. Unbiased millionaires have been break up 60/40 for Harris and Trump respectively.
UBS requested the respondents, between Trump and Harris, who can be higher outfitted to “deal with the economic system”. Trump edged Harris out, with 51% of respondents selecting him. He additionally beat Harris on the identical query concerning taxes, nabbing 52% of respondents’ favor. However it’s not winner-takes-all; the traders advised UBS Harris is healthier positioned to enhance well being care.
Maybe that’s unsurprising; Trump is famously common amongst high-net-worth people for his proposition to increase and develop his 2017 Tax Cuts and Jobs Act. (Treasury Secretary Janet Yellen not too long ago blamed the U.S.’s ongoing fiscal bother on the Act, which she mentioned is “answerable for most of the issues that we face now with our fiscal trajectory.)
Harris, alternatively, solely needs to chop taxes for these making lower than $400,000 per yr. People (and companies) incomes greater than that may anticipate to pay extra taxes underneath a Harris administration.
Trump’s Tax Cuts and Jobs Act is set to run out on January 1, 2026. If elected, he’d probably lengthen the Act, whereas Harris would near-certainly overturn it.
The overwhelming majority (77%) of traders mentioned they’re prone to make adjustments to their portfolio earlier than Election Day—many saying they’d add protections or improve investments and money holdings. Ought to Harris win, they’re extra desperate to put money into healthcare, tech and sustainability sectors; protection, power and industrial is most tasty if Trump heads again to the Oval Workplace.
“Purchasers and enterprise homeowners world wide have their eyes on the U.S. elections and need to know what both consequence means for his or her investments and the way it will have an effect on them going ahead,” the report quotes Iqbal Khan, UBS International Wealth Administration co-president, as saying.
Whichever method the election goes, simply over half (55%) of the millionaires advised UBS they’re “extremely” assured concerning the route of the economic system. Simply 43% mentioned the identical in 2020 within the months earlier than the presidential election.
In tandem, 3 in 4 traders—virtually 20% greater than mentioned the identical in 2020—mentioned they’re “extremely optimistic” about their portfolio returns over the approaching six months. Amongst enterprise homeowners, 74% mentioned they’re optimistic about their very own enterprise’ efficiency within the subsequent yr—a 6% rise from 2020.
Financial efficiency is “clearly a high concern,” Rob Karofsky, one other co-president of UBS International Wealth Administration, wrote. “It’s encouraging to see a basic improve in optimism as we navigate the unstable market panorama in an election yr.”