Main Street investors are feeling upbeat about their finances ahead of the Presidential election, even as the wealthy are hoarding cash, two new surveys show.
Eighty-four percent of wealthy investors said that the upcoming election will have a significant impact on their financial health, according to a soon-to-be-released UBS survey.
Though high-net-worth investors usually keep an average of 20 percent of their portfolios in cash, now many of the wealthiest UBS clients have at least 25 percent in cash because of the election, Bob McCann, who chairs the Americas division of UBS, told Reuters. The bank surveyed more than 2,200 high-net-worth investors.
Meanwhile, average American investors are feeling more optimistic about their future. To that point, 46 percent said their finances will stay the same and 39 percent expect their lot to improve over the next year, according to the Heartland Monitor Poll released on Wednesday by Allstate and Atlantic Media.
That positive attitude contrasts with 92 percent of those surveyed in the Heartland poll who said they believe the nation's political system is not working well enough to solve the country's problems. (See chart below.)
"This dichotomy between the dour view of the direction of the country and how people see their finances is a picture that hasn't changed," said Bill Cullo, managing director for FTI, the research firm that conducted the survey of 1,000 individuals. Only 4 percent of those surveyed made $200,000 or more.