According to the latest Global Investor Sentiment Survey from Franklin Templeton Investments, 64 percent of investors in the U.S. and Canada expect their local stock market to finish the year in positive territory this year, making them the most bullish among the four major regions we surveyed.
And while a majority shows optimism for stocks, expectations have fallen since the last study. Investors in Latin America indicate the largest decline in sentiment, as the portion expecting stocks to rise has shrunk by nearly 20% since last year.
Investors will look to stocks, real estate, and precious metals for the best returns this year. Their projections for the next ten years remain consistent with those for 2015, as they expect stocks to provide superior returns over the long-term.
Spanish investors report the biggest lift in optimism with a 14% jump since last year, followed by China (12%), France (12%), and the UK (9%). On the other end of the spectrum, the sentiment of Brazilian investors has declined by 19% during the same period.
Nearly one-third of investors plan to increase their equity exposure this year. In fact, more than twice as many plan to increase their position in equities than plan to draw down. Investors may be acting on their conviction that stocks will provide the best returns this year.
Investors continue to recognize the opportunities that exist outside of their home countries, a trend our survey has shown over the past five years. The largest portion of investors believes the U.S. and Canada will offer the best equity and fixed income returns in the year ahead.
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With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
