Investor Craving For Real Estate Hits an 8 Year High

18/06/2014 – Expansion

 According to results of a survey carried out monthly among fund managers by Bank of America Merrill Lynch, investment experts have regained the appetite for risk in the circumstances of abundant liquidity and “fairly positive” economic outlook.

Around 66% of the respondents believes the global economy will gain strength in 2015, however, the executives increasingly doubt about the growth rate as 78% of them thinks it will underperform.

Moreover, among the noteworthy assets, the investors admit the greatest popularity to the property with 6% of the investors pondering putting equity in this market. This is the best figure in the last 8 years.

In turn, in May year-to-date shares saw a net 48% overweight, by 11% more than a year earlier. 15% of the respondents said the global stock exchange is overvalued, while asked about Europe, only 6% thinks the same. 16% claims the Old Continent´s shares are underweight.

“Once Europe has given a cheap opportunity of exposition to equity but the market is not considered cheap anymore. Due to the concerns raised about the growth rate, the optimism may cease”, said Obe Ejikeme, strategist at the European Stock Exchange.

Just on the contrary, the investors who underweight bonds have reached the highest level since the end of 2013. 75% thinks the debt is overvalued.  At the same time, they have cut in their capital reserves by 4.5%.

What is more, the position of US Dollar went up among the investors and 79% expects it to maintain that power over the next year.


Original article: Expansión (by A. A.)

Translation: AURA REE