sentix ASR Essentials 25-2017
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25 June 2017
Posted in
sentix Weekly
High underlying uncertainty points to volatility pick-up
The latest sentix survey indicates that investors are now only modestly pessimistic on the near-term outlook for equities, set against a medium-term strategic bias that has seen a marked improvement in recent months. However, highly elevated sentix neutrality indices suggest that there is also an underlying uncertainty on the nearterm outlook for equity markets. This fits in with survey positioning data which suggest that over-investment in equities is running at below longer-term average levels. It is a similar story in bonds, with near-term neutrality highly elevated on bunds. The risk is that such high uncertainty leads to a pick-up in volatility in equities and bonds over the summer. See Charts 2-4, p2.
