A new UBS survey has revealed that affluent investors are optimistic on economy but are holding more cash due to concerns over the ongoing trade war, dampening overall market optimism.

According to the UBS Global Wealth Management’s quarterly Investor Sentiment survey, around 73% of the surveyed investors expressed concerns over market volatility resulting from the trade impasse.

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Due to the ongoing scenario, around 34% of the respondents said that they are shifting more money to cash.

The fall is investor optimism is also anticipated to affect the job market. The survey found that around 34% of the business owners have plans to hire new people, a drop of five percentage points.

Additionally, 44% of the respondents expected a global recession in the next six months.

Around 53% of the respondents expressed confidence on the global economy and 61% on regional economy. The two figures climbed two percentage points from the last quarter.

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UBS Global Wealth Management client strategy officer Paula Polito said; “Geopolitical concerns such as the global trade war are keeping investor optimism in check.

“There is a dichotomy in sentiment – investors are holding large cash balances in a wait-and-see mode, even though nearly 50% anticipate higher stock market returns in the next six months.”

Specifically, the survey found the investor optimism on economy in the US and Europe almost stable quarter over quarter. In Latin America, the figure dropped from 69% to 61% in the same period.

On the other hand, the investor optimism grew in Switzerland and Asia.

The UBS quarterly Investor Sentiment survey included responses from more than 4,600 wealthy investors and entrepreneurs across 18 markets.