Love is in the air. Well, love at least for U.S. equities, according to a number of recent surveys. It's a fair assumption that the writer of the 1977 disco classic was not thinking of U.S. equities, but if the song fits...
Market participants appear bullish on economic growth prospects, are placing their bets on U.S. companies, and are willing, currently, to prolong their romance with the class. Here are a sampling of recent surveys:
- Nearly 23% of market practitioners have a positive outlook on the global economy in the next 12 months, compared to 1% a year ago, according to a recent Bank of America Merrill Global Research survey. Allocations to U.S. equities was a net 13% overweight, 0.8 standard deviations above the long-term average.
- About 26% of North American foundations and endowments expect domestic equities, the most commonly cited asset class, to be the strongest performer in 2017, according to a quarterly NEPC survey. Concerns regarding a slowdown in global growth fell from the number one spot from the previous survey, giving way to geopolitical concerns.
- More than half of the advisors polled in an Eaton Vance survey were bullish on U.S. equities despite political uncertainty. While advisors see opportunities in the equity markets, they noted potential volatility in the markets, which presents both challenges and opportunities.