/ world today news/ Investors’ faith in the growth of the world economy and corporate profits strengthened. Confidence in Europe and Japan grew especially strongly.
There has been a sharp change in the position of investors about trends in the world economy – fears of global stagnation that prevailed this year have been replaced by optimism.
The share of investors who believe in the strengthening of the world economy in the next 12 months reached 71% in December against 67% in November, according to a poll by BofA Merrill Lynch, which was carried out at the end of 2013. 237 businessmen and managers participated in the survey , whose companies manage $600 billion in assets.
Compared to a year ago, optimism regarding the prospects of the world economy has significantly increased. Then, with positive expectations, only 40% of the respondents were infected.
Confidence is growing in Europe and Japan
83% of the survey participants predict a strengthening of the European economy, they also exclude the possibility of a recession in Europe, and 64% expect an increase in corporate income in 2014.
“Belief in the recovery of European markets is at an all-time high, which is intensifying the race for profits,” commented John Bilton, European investment strategist at BofA Merrill Lynch.
44% of respondents in Japan predict a strengthening of the local economy in 2014.
Optimistically evaluating the prospects of the world economy in general, and Europe in particular, investors give a positive forecast for the dynamics of the shares of Japanese and European companies.
The survey by BofA Merrill Lynch shows that 22% of the most preferred investment region is Japan, and 33% consider the shares of Japanese companies to be undervalued.
Demand for shares of Eurozone companies will not only remain at a high level, but will also show modest growth. These securities will be selected by 43% of respondents.
The love of banks
The most popular sector for investment in the world will be banking. 17% are ready to invest there. On the other hand, asset managers are not betting on stocks of commodity companies, which remain unpopular. 31% prefer to reduce the share of raw materials in their portfolios.
According to the head of the strategic investment department of BofA Merrill Lynch Global Research, Michael Hartnett, the weakening of the US dollar in the new year 2014 is the biggest threat, considering the trends in the Japanese and European markets.
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