Economy

The Super Rich Are Preparing for Recession

Written by SK Ashby

No one can say for sure if we'll see a recession next year but, for what it's worth, the richest people in the world think we will and they're already preparing for it.

According to a survey conducted by Swiss investment bank UBS, over half of the worlds billionaires expect a recession and almost as many have begun shifting their assets to shield them from a recession.

The reason they're worried about the near future, they say, is because of Trump and Boris Johnson.

That is according to a UBS survey of 360 global family offices with an average family wealth of $1.2 billion. Results showed 55% of family offices see a recession by 2020, and to mitigate risks, 45% are already adjusting their portfolios including shifting to bonds and real estate, while 42% are increasing their cash reserves. [...]

Who knows what will happen with Brexit, what will happen in the EU, and what will happen between the U.S. and China,” said another survey respondent, a CEO of a single family office in Europe. “There are so many open questions, and this could have a dramatic impact on the market. In general, we think we have reached our peak.”

Indeed, who knows what will happen?

I don't think we'll be waiting in suspense for very long because the United Kingdom is either going to exit the European Union next month or they're going to remain for the foreseeable future.

Next month is also when we'll see if Trump's trade war is going to persist, escalate, or fade away.

Potential tariffs on European goods are also looming on the near horizon.

And Republicans once said President Obama created "uncertainty."