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UBS Chief Investment Strategist Mike Ryan offers tips for creating a strategy for your portfolio.
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-- -- investor are you still on the sidelines is it time now for you to get off the sidelines get into the game get your hands on the ball total US trading volume we thought this would really.
Articulate what we're talking about here the volume has been on the decline since the very scary market bottom of 2009.
Joining made out of Fox Business exclusive Mike Ryan chief investment strategist at UBS with a brand new investor invest.
Sort of that sentiment survey here rather and and the number one issue that you've got because it's sort of twofold here.
What you think and then what the investors think you think investors have too much cash on the sidelines what are investors.
While investors are telling -- similar things in terms of what they're concerned about as we're concerned about and its interest thing or listen to dance message from the mark -- talking about this wall of worry in Washington.
And certainly that clearly came through investors if you go back two years ago they -- concerned about the health of the economy they're concerned about financial markets.
That's been displaced now and more about concerned about dysfunction Washington and the ability to solve.
Or problem -- spending cuts on the and the debt deal highly important 76%.
Of those that you surveyed said it was very important to their money guys sound yet.
How would it be impact full on people's portfolios if there isn't a debt ceiling deal what I.
I think what's gonna happen loses that I think investors are actually being very very pragmatic about how they're addressing these issues of Washington I I always say that.
Investors are incredibly adaptive creatures we we've basically got to our environment.
So what you're seeing is investors right now are saying okay.
Rather than looking for the big deal.
-- saying okay let's clear these hurdles and and what they'll do is hop around like they're missing the rally they are but we are starting to see who is levels of engagement that the notion that everyone's on the sidelines I think -- and the misplaced notion.
There's plenty of cash but there are people who selectively -- we're trying to do is get people to engage in a thoughtful way.
In areas where we think.
The risk -- clearly favors -- That's a little bit of optimism we just show the people feel that 40% at least -- were significantly better than a year ago they feel 56%.
Good about their financial situation.
So but that's that's inching higher.
But they're not doing much with that to make the money to capitalize.
If you were to advise people watching right now about.
The fear -- -- -- them at night worries that they'll get bank again by what he's on 2009 march in particular the real bottom what would you say.
I actually telling -- a two part answer the first is get a plan.
It's interest thing is when you look at the survey what we really found is that those would actually done a financial plan.
Both feel better about how they've done last year and they also more optimistic about the how would do the next one -- four years so that's part of it.
And then the second that was let's figure operate engagement strategy for each individual how do you put this together how many people -- survey and what is their their income that high end investors we we survey over 202000.
Rather investors and they tend to skew towards the high net worth -- so again this the folks who are.
Her affluent and by the way.
Their decision makers their investment decision makers in the household I like the one -- at 86.
Percent believe that we are in a frat child recovery I've I've what disinterested -- challenge more interest in the fact that they perceive it is a recovery.
-- I think -- Kind of gotten past this notion that.
Are we at the cusp of the of a double dip recession and people except that it's -- recovery but they also recognize that this is going to be.
A different kind of economic carbon it's in the past where the opportunities of somebody's watching right now -- mean you guys -- the money guys the UBS where if they do start to get a little more confident.
Should they be putting their money for opportunity 2013.
Two places we're focusing on first -- still on the credit side.
While the fixed income markets gonna have some -- the rates ahead.
We think there's an opportunity get a higher level of income in the credit sensitive sectors like high yield and investment grade corporates.
But we do have an engagement strategy in the equity markets as well.
We actually had to move to an overweight equities are preferences there -- the emerging markets in the US emerging markets people throw that term out is there a particular region.
We deal we we we still have a a preference for for Asia which we think that the growth dynamic here continues to improve China works through this soft patch.
We think that's the area where -- -- -- growth prospects -- -- -- UBS investor watch and this is of the brand new survey from UBS I appreciate you coming here exclusively to tell us because want to find out what -- -- -- thinking that sometimes helps to see some clues as to where investments like though it -- thank -- Mike thank -- it's Mike Ryan is chief investment strategist at the united think Switzerland thank you very much --
