Democrats are coming around on the stock market – Business Insider

U.S. President Donald Trump and his daughter Ivanka hold a video conference call with Commander Peggy Whitson and Flight Engineer Jack Fischer of NASA on the International Space Station from the Oval Office of the White House in Washington, U.S., April 24, 2017.  REUTERS/Kevin Lamarque
Trump and his daughter Ivanka.


President Donald Trump may be the
least popular president in modern history
, but even his main
detractors can’t deny the stock market’s strength under his

About 57% of Democrats say they feel optimistic about the
short-term outlook for stocks, a significant increase from 10% in
October, according to a survey conducted by UBS. Their sentiment
on the SP 500 has climbed steadily since the presidential
election, the data shows.

That groundswell of confidence has mirrored a similar improvement
in the overall economic outlook across all political parties.
About 61% of investors are optimistic about the US economic
outlook, up from 42% last summer, according to the survey.

Further, while US investors are holding about 20% of their
investable assets in cash, UBS found that more than half of them
said they were willing to deploy that capital — so long as they
saw more progress from Trump, especially on policies that would
further boost economic growth.

They’re specifically interested in lower personal income taxes
and more infrastructure spending. About 40% of survey respondents
said they needed to see steps toward those initiatives before
they would put more cash to work in the market.

Business owners, however, are ready to deploy capital now, the
survey found. About two-thirds of them said they planned to
invest more in their business, while 56% said they would increase
hiring. Each figure is more than double the proportion who said
they expected to invest less or downsize their workforce,

Investor stock market confidence matches expectations from
strategists across Wall Street, who see the SP 500 climbing
another 2% by year-end, according to a 19-person Bloomberg
survey. Binky Chadha of Deutsche Bank, the most bullish with a
target of 2,600, said he saw the index rising 7.7% from Monday’s

UBS surveyed 2,272 affluent and high-net-worth investors, as well
as 383 business owners with at least one other employee. The firm
also conducted follow-up interviews with 90 respondents.

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