'Hype' indicators point to equity recovery in Q1

Uptick in investor sentiment

Laura Dew
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

The indicator tracks sell side strategists’ average recommended allocation to equities in a balanced fund.

Sell side equity sentiment reaches highest level since May 2022

Bank of America sentiment indicator

Elliot Gulliver-Needham
clock 03 January 2024 • 1 min read
The risk is that mega-cap tech stocks may be used as a 'source of funds' if a hard landing is avoided.

Active managers warn of 'crowding risk' in mega-cap tech in 2024

Bank of America research

Cristian Angeloni
clock 03 January 2024 • 2 min read
The firm explained that the economy Vietnam is ‘very attractive’ to Foreign Direct investment (FDI) due to trade agreements and a ‘solid’ infrastructure.

Eric Sturdza launches Vietnam equity UCITS fund

Strategic Vietnam Prosperity fund

clock 13 December 2023 • 1 min read
Trustpilot