sentix ASR Essentials 04-2016
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31 January 2016
Posted in
sentix Weekly
Festive hangover yet to lift from Equity sentiment
It has been a chastening start to 2016 for risk assets, with the European and US equity markets ending the month down 7% despite a firmer showing last week. The latest sentix survey suggests the recent bounce in oversold equity markets has done little to lift investors’ spirits. The level of survey participants’ over-investment in equities has fallen below longer-term average levels. Perhaps more worryingly, the survey also suggests investors are becoming ever-more downbeat on the mediumterm strategic outlook for equities (see Charts 2 & 3, P2). Deep pessimism remains the dominant theme on equities, while on the other side of the sentiment divide investors are becoming more upbeat on the strategic outlook for bonds (P4).
