The world’s wealthiest families are girding for a recession by 2020, in part by stocking up on a critical financial asset when times get tough to cash
New Delhi: The new research by investment bank UBS and Campden Wealth Research, which surveyed 360 ultra-rich households with some prominent “family offices,” or investment firms that are dedicated to managing their personal fortunes. Some of the rich families are noted in the survey, who had an average wealth of $1.2 billion, they were setting aside cash not only to hedge against a slowdown but also to capitalize on potential investment opportunities.
“There are notable 56% of family office executives Which are likely to anticipate a recession by 2020, In response, a number of family offices are preparing themselves with safeguards to mitigate the loss to strike at new opportunities” according to current UBS report are noted.
According to the sources a UBS survey of 360 global family offices with an average family wealth of $1.2 billion. As many as 55% of family offices are seeing a recession by 2020, and 45% are already adjusting their portfolios, to mitigate risk, while 42% are increasing their cash reserves. More than half of the world’s richest families are expecting a recession by 2020, according to a survey by UBS and Campden Wealth Research.
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Almost half of the rich families said they are shifting assets into cash, not only to mitigate market risk but also to capitalize on “opportunist” investments in case of a downturn. Striking more than 90% of private firms that handle money for the ultra-rich think the growing trade war between the U.S. and China will have “major economic implications.”
“Family offices are cautious about the geopolitical tensions and trade war, and there is a widespread sense thus we’re reaching to the end of the current market cycle,” said Rebecca Gooch, director of research at Campden Wealth.
The U.S.-China trade war has spiked the fears of a recession. Jeffrey Gundlach and David Rosenberg are two prominent economist and notable investors have warned the height of recession risks till 2020.
The prediction of a recession is very clear as many Democratic presidential candidates have proposed wealth taxes to cut income inequality. Elizabeth Warren and Bernie Sanders have both unveiled proposals that would tax the richest Americans’ assets
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