As the 2024 U.S. Presidential election draws near, a fresh UBS Investor Watch survey reveals a sharp divide among wealthy investors and business owners over which candidate would better manage the economy.
Interestingly, 57% of investors plan to throw their weight behind Vice President Kamala Harris, while 43% lean towards former President Donald Trump. Meanwhile, the business owner demographic shows a slightly different split: 53% favour Trump, whereas 47% support Harris.
It’s worth noting that economic concerns take precedence for both camps, with 84% of investors and 83% of business owners tagging it as their main issue. While Trump is perceived as more adept at handling taxes and immigration, Harris garners more approval for her healthcare and green energy policies. Curiously, both groups seem undecided on who is best suited for addressing Social Security.
Furthermore, investor optimism is notably on the rise. Indeed, 74% of investors are highly optimistic about portfolio returns over the next six months. This marks a significant uptick from the 57% recorded back in 2020. Business owners share this buoyant sentiment, with 74% expressing optimism for the next twelve months compared to 68% four years ago. For more context, you might find this article on [investor optimism](https://www.wsj.com/articles/investors-see-brighter-future-11602509978) worthwhile.
The survey suggests financial planning will be pivotal in steering through the economic uncertainties of the election year. Significantly, 77% of investors consider making portfolio adjustments ahead of the election. Changes include tweaking sector allocations, upping cash reserves, and adding portfolio protections. Sector preferences seem to hinge on the election outcome. Investors reckon healthcare and sustainable investing would thrive under Harris, whereas sectors like defense, energy, and industrials are expected to gain if Trump wins. For further detail, you might peruse this [detailed sector analysis](https://www.marketwatch.com/story/why-the-next-president-will-have-a-massive-impact-on-stock-market-sectors-2020-11-02).
In conclusion, the 2024 election’s result is poised to significantly sculpt the U.S. economy’s future. Accordingly, investors and business proprietors are gearing up in anticipation. As you can see from this [comprehensive breakdown](https://www.bloomberg.com/news/articles/2020-10-23/what-a-trump-or-biden-win-could-mean-for-markets-and-the-economy), their strategies are highly context-dependent.
