Investors optimistic about risk appetites, MPG survey finds
05 May 2023 UK
Image: jirsak/stock.adobe.com
84 per cent of professional investors expect their appetite for risk to increase over the next year, recent research from Managing Partners Group (MPG) has found.
65 per cent of this group expect a dramatic increase, with only 8 per cent predicting no change and a further 8 per cent stating that it will decrease.
The survey, conducted in March 2023, polled 100 institutional investors and wealth managers across Switzerland, Germany, Italy, the UK and the US.
These predictions run in tandem with anticipated market growth, economic growth and overall improvements of macroeconomic conditions.
MPG found that 61 per cent of investors predict economic growth over the next 12 months. Of this group, around half expect dramatic improvements to the global economy, with 56 per cent envisaging moderation in wage inflation.
60 per cent expect the energy crisis to improve, and 62 per cent state that the global goods supply and demand imbalance will improve.
The majority of those surveyed expect to see European equity markets end the year higher than their current positions. Within the continent, 79 per cent foresee this in the Swiss equity market — 44 per cent to a significant degree.
In Italy, equities markets were expected to improve by 66 per cent of participants. For German equities markets this was expected by 61 per cent of those polled, and for French equities markets 52 per cent of participants predicted an improvement.
Outside of the EU, more than 50 per cent envisage improvements in UK equity markets by the end of 2023, with only 47 per cent expecting the same in US equity markets.
Commenting on the survey’s findings, Jeremy Leach, CEO of MPG, says: “Our research shows that investors are becoming increasingly more risk tolerant, as they are encouraged by signs of market growth, economic growth and improvement in macro-economic factors. They have a belief that long-term gains will outweigh any short-term volatility and believe it’s a good time to invest, with the majority predicting that the markets worldwide will be higher this time next year.”
65 per cent of this group expect a dramatic increase, with only 8 per cent predicting no change and a further 8 per cent stating that it will decrease.
The survey, conducted in March 2023, polled 100 institutional investors and wealth managers across Switzerland, Germany, Italy, the UK and the US.
These predictions run in tandem with anticipated market growth, economic growth and overall improvements of macroeconomic conditions.
MPG found that 61 per cent of investors predict economic growth over the next 12 months. Of this group, around half expect dramatic improvements to the global economy, with 56 per cent envisaging moderation in wage inflation.
60 per cent expect the energy crisis to improve, and 62 per cent state that the global goods supply and demand imbalance will improve.
The majority of those surveyed expect to see European equity markets end the year higher than their current positions. Within the continent, 79 per cent foresee this in the Swiss equity market — 44 per cent to a significant degree.
In Italy, equities markets were expected to improve by 66 per cent of participants. For German equities markets this was expected by 61 per cent of those polled, and for French equities markets 52 per cent of participants predicted an improvement.
Outside of the EU, more than 50 per cent envisage improvements in UK equity markets by the end of 2023, with only 47 per cent expecting the same in US equity markets.
Commenting on the survey’s findings, Jeremy Leach, CEO of MPG, says: “Our research shows that investors are becoming increasingly more risk tolerant, as they are encouraged by signs of market growth, economic growth and improvement in macro-economic factors. They have a belief that long-term gains will outweigh any short-term volatility and believe it’s a good time to invest, with the majority predicting that the markets worldwide will be higher this time next year.”
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