First time positive
Though the macroeconomic sentiment has consistently improved since Expert Investor Europe started gathering data roughly three years ago, it is now net positive for the first time. French fund selectors are still not particularly positive on France’s economic prospects, but they believe the European debt crisis has been subdued. At the same time, they feel the recovery of the European economy as a whole is well underway, further supporting equities.
Still going strong
European stocks are the most popular equity category among Parisian fund selectors, mirroring general sentiment among their European peers. Two thirds of fund buyers interviewed by our researcher on his visit to Paris said they will step up their allocation, extending a two-year long bull streak for the asset class. The remaining third will leave their allocation unchanged. A number of interviewees said they find the deleveraging process many European companies have engaged in encouraging.
US out of favour
Like a year ago, French investors have a preference for small- and midcaps within European equities. US equities, delegates’ favourite at last years’ Expert Investor France, are slightly out of favour, also following a general European pattern. Also French fund selectors are starting to become wary about the high valuations.