Previous U.S. equity barometers

Barometer of European interest in U.S. equities

February 2010



During February 2010 Phoenix-IR researched the views of 70 leading institutions based in nine European countries (UK, Switzerland, France, Germany, Belgium, Ireland, Italy, Netherlands and Sweden) managing total assets in excess of $3,200 billion. The results show that Europeans are cautiously optimistic on U.S. equities. They are not looking to exit the market after its strong run but are focused on making concentrated bets on specific opportunities.
What do you think of the current valuation of the S&P 500?
  • 61% of sample believes the S&P 500 is fairly valued
  • Bullish/Bearish sentiment has crossed and a net 13% believes the S&P 500 is currently slightly overvalued
What is your current weighting to U.S. Equities?
  • Net overweight from six months ago has been removed as investors have moved back to equilibrium
  • Nearly 60% are now neutral and the overweights and underweights match at 22% each
Over the next 12 months, do you intend to change your weighting to U.S. Equities?
  • Investors appear to be quite optimistic
  • Even though 58% do not intend changing weighting, 36% intend to increase and only 6% to decrease
What are your current U.S. sector allocations?
  • Technology is still a top choice among investors but industrials, energy and health care have joined it as favored sectors
  • Consumer staples has moved slightly into positive territory and consumer discretionary continues to make progress
  • Materials moves into underweight territory
  • Financials, telecoms and utilities are the least favored sectors
What is your current view on U.S. sector valuations?
  • Materials sector is perceived to be the most overvalued sector
  • Consumer discretionary is the only other sector seen as overvalued
  • Most groups seen as moderately undervalued except of health care which is the most undervalued
Over the next 12 months, what do you expect the U.S. dollar to?
  • Europeans were negative on the dollar in 2009 but are now positive with net 43% of investors expecting Greenback to appreciate over the next 12 months
  • This is a return to the optimism on the dollar that existed back in 2008
Market expectations for corporate earnings for the next 12 months?
  • Most investors feel market expectations are currently about right
How would you describe your current cash position?
  • Cash positions have increased slightly
  • A net 22% of investors still holds more cash than normal which could be supportive
Where do you think the S&P 500 will end the year?
  • Confidence continues to improve as 50% of sample expects S&P 500 to end the year above 1,100
What is the average holding period of stocks in your portfolio?
What is the Active Share Ratio of your portfolio?

Where do you stand on the “inflation vs. deflation” debate?
  • Short-term inflation expectations have moderated
  • However, there is a clear expectation of inflation beyond 2012

News

June 2012  Request Invite
NASDAQ OMX 28th Investor Program in London on June 26, 2012
More than 30 companies will present and host one-on-one meetings with over 200 investors from across Europe.

June 2012  Request Invite
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