Outlook optimistic for 2013

Most investment professionals worldwide are optimistic about 2013, a new survey from the CFA Institute has found.

According to the CFA Institute’s 2013 Global Market Sentiment Survey, 40% of respondents think the global economy will expand in 2013. This is a six-point increase over last year’s poll. However, respondents recognize that there is much work to be done to restore financial market integrity.

“There is mounting optimism around global economic growth from both investors and the financial industry, despite ongoing issues like the European sovereign debt crisis and significantly greater concern about mis-selling,” said Kurt Schacht, managing director of standards and financial market integrity with the CFA Institute.

Survey highlights include the following:

  • 20% of respondents believe the economy will contract, down from 29% a year ago;
  • those in advanced economies (42%) are more optimistic than members in developing economies (35%);
  • half of respondents globally think equities will provide the highest expected total return in 2013, up from 41% a year ago—when compared to bonds, cash, commodities and precious metals; and
  • only 4% expect cash to outperform, down sharply from 2012.