Tremendously confident and optimistic, fund managers are looking forward that the stock market will surely rise this year and that the US dollar will plummet further while China’s ever expanding economy will rejoice in bounty according to the latest polls of its patronising clients.
At least 86 % surmise equity markets would definitely rise with nearly a quarter of the statistics thinking the FTSE 100 would be performing to its best capacity as major indices. It’s not much of a surprise that more than 90 % are thinking that European companies are hinting a net improvement in their earnings.
In the Dollar’s point of view, around $1.32 against the Euro, two thirds of managers deemed it would further weaken. Some 40 % thought that it would rise to $1.41 or even lower by the end of the year. Several analysts speculate that a dollar rally over the first half of the year is bound to happen debating that the growth in the US is effortlessly exceeding that of the European markets and that the European Central Bank may start to mediate at the $1.35 mark.
Optimism fuels China as a 77 % fore-casted soft landing is bound to happen in the coming weeks and not to translate into confidence in the metal and mining industry which have benefited from the strong demand for raw materials by the Chinese. Some 37 % voted the sector the most probable to perform worse this year, contrary to pharmaceuticals after two years of weak inputs are favoured to perform well this year.
Most analysts agree that the speculations for this year’s switch to the new International Financial Reporting Standards Regime is in fact one of the major contributing factors, by which investors would do quite well in focusing in the IFRS since there’s so much in store for this year.
Other opinions include the submission of investors on cash flow. The shared buy-backs that amounted to 1.5 % of the market capitalisation in the previous year and the share prices of companies purchasing back their own shares have a likelihood to surpass the present trend.
Merger and acquisitions, which Europe garnered it’s highest since the last decade is optimistic to fast track its progress as companies and firms spend excessive cash.