Investor sentiments in Asia have dampened with nearly half of high net worth individuals in the region believing that equity markets are currently running too high and are due for a correction, according to a recent survey by Lombard Odier.
44 percent of APAC high net worth individuals agreed with the sentiment, according to Lombard Odier’s «2020 UHNWIs Study», compared to 31 percent of respondents that expect markets to keep rising.
Singapore and Taiwanese investors were the most concerned about a correction (both 52 percent) while Indonesia led the region as the most optimistic (20 percent).
Advice Needed
Although the levels of market confidence vary, the high net worth segment in the region broadly agrees on the need for advice.
Almost 2 out of 10 HNWIs said they feel «lost» and would appreciate more guidance from financial advisors.
«Diversification is of critical importance amidst today’s climate of volatility, and investors are looking for quality advice and access locally to global offerings,» said Lombard Odier’s limited partner and Asia chief executive Vincent Magnenat.
Post-Covid Focus
One key area respondents highlighted as a post-pandemic focus was family-related matters with 60 percent admitting that the crisis has led them to rethink decisions such as domicile.
As many as 40 percent in Singapore are thinking about relocation, for example, followed by Thailand (34 percent) and the Philippines (32 percent).
«As we move forward and embrace this 'New Normal' where ambiguities still abound, HNWIs have shown, through our study, that they are very much relying on their bank’s expertise to guide them through the turbulent environment,» Magnenat added.
