'Hype' indicators point to equity recovery in Q1

Uptick in investor sentiment

clock • 3 min read

A divergence in investor behaviour is pointing towards a recovery for equities in Q1 2019, according to research by Fidante Partners, with sentiment and fund flow data indicating the asset class is no longer in 'despondency' territory.

In its quarterly Hype Cycle report, which analyses investment hype in financial markets via Google searches, ETF flows and the premium over the net asset value of relevant investment trusts, the firm said the basis for its equity recovery prediction was rooted in investor behavioural patterns. What will December's sell-off mean for investors in 2019? It said that although retail investors were being "excessively pessimistic" about equity markets, institutional investors had been putting money to work to benefit from recent lower prices. Historically, trends like this indicate a boost ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Equities

Partner Insight: Attractive yields but narrow spreads - The credit dilemma

Partner Insight: Attractive yields but narrow spreads - The credit dilemma

Arif Husain, Head of International Fixed Income and Chief Investment Officer, Fixed Income at T. Rowe Price
clock 14 February 2024 • 4 min read
Partner Insight: US SMID - Seven questions answered

Partner Insight: US SMID - Seven questions answered

After a bumpy 2023, small- and medium-sized US companies are now in a good place to outperform in 2024, argues fund manager Mark Sherlock.

Federated Hermes
clock 12 February 2024 • 6 min read
Equity funds gather highest inflows in three years as investor confidence returns

Equity funds gather highest inflows in three years as investor confidence returns

Calastone Fund Flows index

clock 07 February 2024 • 3 min read
Trustpilot