ILUSTRASI. The logo of Swiss bank UBS is seen at a branch office in Zurich, Switzerland January 27, 2017. REUTERS/Arnd Wiegmann
Source: Reuters | Editor: I knew Laoli
KONTAN.CO.ID – ZURICH/LONDON. The billionaires or wealthy families who are customers of the Swiss bank UBS, secretly take advantage of the fall of the market to reap quick profits.
Even now the rich families are moving some of their money to the bank after the stock selloff which gives them huge profits in a very fast time from March to May 2020.
Quoting Reuters, Saturday (7/18), when the stock market fell in March 2020 throughout the world, UBS’s richest customers took billions of dollars in loans to collect good stocks that were destroyed.
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Because of this stock buying action, the world stock market later rebound quickly and they then sold the shares in May holding cash and placing profits in personal assets and part of it to pay bank loan interest, UBS ‘global family office chief Josef Stadler told Reuters.
This strategy of buying shares during a falling market has helped a number of family offices that manage the financial affairs of the richest hedge funds in the world and the market as a whole is enjoying profits beyond their target in May.
“We have loan records written during mid-March and mid-April, from significant family offices that ask us to balance and then go to the market,” Josef Stadler said in an interview.
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“They buy, for example, US equity, but they don’t buy US $ 50 million. They buy one billion more of that equity to rebalance. And they make a lot of money,” he added.
At present, billionaires who have reaped huge profits from the rapid rise of the market are looking for safer forms of investment.
