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The Top 5 Concerns for Investors

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    UBS Chief Investment Strategist Mike Ryan on the rise in investor optimism.

  • Duration 4:10
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That's how we have a first look into the UBS investor watched survey I have -- in my hands and it won't be released until tomorrow.

But we have that here and it looks like in this is actually good news.

That while investors have been sitting on cash for very long time they now very well may want to get back in the game that's what the survey shows joining us now.

In a first on fox is considered is Mike -- UBS.

Chief investment strategist and I grabbed this because I I read it every year that it comes out -- always wanna see -- -- with very huge client list -- And you can get a real sense of what people are thinking pick -- the number one thing what number one sentiment that you see from your clients right now.

I I think you hit -- at the top was I think.

The sense now that the declines have been sitting on the sidelines have taken a very cautious approach towards a market they're born to be conservative position and defensively biased.

Are now looking to take on more risk that no we're not talking about you know taken all -- plunge into the market.

But less cash that they want they expect to hold going forward and more commitment to market that's me is one of the biggest -- what is the trigger for that why the change in sentiment.

The best acting tribute attributed to -- an absence of -- we we had nothing over the summer breaking down blowing up from melting down.

And remember the last couple Summers we've had these events whether their -- -- debates or issues of value of the -- tsunami in Japan.

We get a series of events that are really hung over the markets I think the fact that we didn't have that plus Koppel couple -- Some of the things you discussed earlier -- show the improvement housing market.

The -- on the financial markets.

All these things have helped the consumer and by product has helped investor -- the fiscal -- not count but people are not.

Stressing about I think they are stressing about it but I think -- -- recognizes that.

They have to be careful not to equate.

I'm risks -- outcomes because we we -- lots of risk that if that taken place the last couple years but they haven't all played out exactly the same morning.

These are the top five investor concerns that you guys were able to -- and at the top -- -- remember this is investor this isn't your average consumer but at the top we saw.

The national debt of rising health care costs then the election these are all kind of unknowns at the moment European debt crisis Middle East -- you know investors at UBS -- pretty sophisticated I would say.

I don't see -- there just plain old worried about the economy.

You know it's interest thing -- I think the economy has kind of dropped down in terms of -- the major concerns now by the way -- I'd say a couple things are related to economy.

That people are trying to link the overhang of debt with ultimate what will -- economy.

And they're also looking at potentially outcome of the election also impacted our growth.

Russell what was what was interesting in this report one of the things that you guys talked about was that if it were a Romney president.

There would be more uncertainty and that it might cost a little bit of slowing growth in 2013.

If Mitt Romney were to win why is that.

I think it's really short term and I think what -- obviously have as a change administration any change administration.

Always leads to a period of uncertainty what policy prescriptions -- would follow what reversals might we see what we've seen the regulatory front what will attacks go look like.

So I think that's really the kind of short term issue but it if you look longer one of the conclusions we did come to in that report.

Is that the growth prospects were actually bit better under Romney when you look past the very short term period.

Greater uncertainty could lead to slower growth but that's just for 2012 -- -- a 2013 rather.

Where are you -- to put the money what do investors feel is the best area the most fertile ground for their money if they are ready.

Vote that triggered come up off the sidelines what.

The first thing here and there -- who -- as they are more willing to commit to the market in general.

Now the one thing we -- -- be careful about is the most of the money that's -- the market has been in the really defensive sectors and there's been a commitment into.

The really.

Areas that have less volatility to provide a higher yield -- dividend Payer again it's that's -- utilities and telecoms have been so expensive.

So we're trying to steer people towards is what we consider to be more attractive cyclicals and some less expensive defensive sectors such -- for example technology.

Industrials but also mixing that with consumer Staples companies that we think -- less expensive.

The -- UBS survey right here including the thoughts on how the election might play out as far as the investors concerned -- crime bringing it to us here first on Fox Business.

We thank you he's the UBS chief investment strategist thank you so much pencils.

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