(U.S. President Donald Trump speaks during a meeting with Chief Executive Officer of Intel Brian Krzanich in the Oval Office of the White House in Washington, U.S., February 8, 2017.REUTERS/Joshua Roberts)
Before taking office last month, President Trump said that his administration will follow the rule of “buy American and hire American.” To make success more likely, we must add “invest American.”
While anticipated reforms to spur growth can be complex and take time, today we have an immediate opportunity to grow the economy, driven by rising optimism and a willingness among investors and small businesses to put their cash to work.
Let’s build on those sentiments and provide reasons to invest in America through incentives, by removing structural impediments, and by focusing on areas that have both the most need and the most interest from investors.
In the United States, UBS manages more than $1 trillion of our clients' assets. We speak to investors daily and frequently gauge their feelings about the U.S. economy and prospects for growth. According to our most recent Investor Watch survey of high net worth and ultra-high net worth individuals*, their optimism about the U.S. economy has increased dramatically since the presidential election.
A majority of these investors are actively looking for opportunities in the market, with 42% looking to add to their equity portfolios. Meanwhile, our survey of business owners revealed that they are twice as likely to increase investment and hiring in their businesses than to scale back. When you consider these sentiments, along with widely held expectations globally for continued U.S. economic outperformance, the signs of demand for growth are encouraging.
(Tom Naratil, President Wealth Management Americas and President Americas, UBSREUTERS/Christian Hartmann)
Let’s be clear that both investors and business owners we spoke with still have a number of concerns. Individual investors continue to express apprehension over the political environment in Washington. Small business owners are chiefly worried about employee healthcare costs, taxes, and regulations.
Yet despite those issues, and after an extended period of uncertainty, both groups overwhelmingly indicate that they are ready to get off the sidelines and begin making the kind of decisions that will positively impact the economy. Business and political leaders should be doing everything we can to listen and respond.
The challenge, in this polarized political climate, is deciding how to make the most of this momentum. Today, there is a great deal of effort and political capital being spent on pushing more complex policy changes that will take time, such as overhauling the politically-sensitive Affordable Care Act or wholesale tax code reform. Instead, why not pursue "quick wins” on issues where there is more likely to be common ground across the political spectrum?