Investors bearish on investment outlook

Published 20 February 2012

These findings are from CoreData Research’s i-Sight Investor Attitudinal Barometer for the first half of 2012. This study runs twice a year and aims to outline active investors’ sentiment outlook towards a number of asset classes and regions.

Below is an outline of the finding highlights:

Asset classes

International shares saw the greatest variation in outlook sentiment compared to six months before with a significantly depressed appeal.

This asset class saw a 38-point drop from 58 to 20, illustrating investors to be much less interested in investing overseas in the first half of 2012.

Domestic securities have also lost their sheen as UK shares suffered a similar fate.

From a relative high of 51 in the second half of 2011, interest in this asset type is now down to 17.
Despite this, equities still have a relatively high standing compared to other asset classes.

The dire state of the property market continues to embed itself deeper into investor outlook. Its downfall continues from -24 in the latter half of 2011 to -32 for the first sixmonths of this year.

Although bonds and fixed interest have more allure than property, with sentiment remaining in positive territory, this segment also suffered a drop of similar magnitude(from 12 to 4).

Least changed is sentiment outlook towards cash/money markets. With a small fall of 4, at 33, it remains the most popular type of investment.

Regions

Europe ex-UK saw the greatest shift in outlook sentiment over the previous six months with a nearly three-fold drop from -23 to -65 as the triad of European crises -government debt, banking and currency – continues to mar investor sentiment outlook towards the troubled region.

The UK, although not submerged in as much chaos, is not considered to be a much better place to invest – with sentiment outlook falling 23 points from 25 to 3.

Conversely, memories of the Arab Spring may slowly be leaving British investors’ minds as a reason to not invest in the Middle East and sentiment towards this oil rich region increased 15 points from -43 to -28.

But it seems the uproar caused has not been forgotten as in aggregate, sentiment remains negative.

Japan also witness a rise in sentiment (+2 points), but with an overall score of remained quite unappealing.

Although emerging economies continue to top the regional appeal scoreboard, investor sentiment towards these regions has also dropped, hinting at an overall bearish approach to investment.

Angele Spiteri Paris, senior consultant, CoreData Research, said: “Despite the strong opening for 2012 witnessed in the equity markets, investors are visibly still tentative and somewhat downbeat in their outlook for investment.
“All six asset classes under review saw a drop in outlook sentiment and the fact that cash and money markets are considered to be the most attractive asset class further underlines investors’ concerns.

“The regional outlook is not looking much better. Just two of the 13 regions included in this study saw an increase in appeal – Japan and the Middle East and North Africa.

Arguably, having started from a much lower base, these two regions were the ones with the most room for improved sentiment.”

срочный займ на карту онлайн оформить займ на карту сбербанказайм под низкий процентзайм до зарплаты онлайн

Inigo Rudio