The Danes have a more positive view on all equity and bond asset classes than their Nordic counterparts, with the exception of EM equities, EM government bonds and absolute return.
Their improving sentiment regarding bonds (read the EIE report on this) does not imply they are starting to shy away from equities, however. Danish fund selectors are still putting their cards on developed market equities, with 60% of respondents planning to increase their weightings in European and US stocks.
Faith in US unbroken
The Danes seem to be less concerned by talk about the overvaluation of American equities than some of their European counterparts, as their appetite for this asset class is the highest since EIE started its research in Denmark in 2009. Just like their Belgian counterparts, who showed a significant uptick in US equity sentiment in a EIE survey last month, they might consider the recent drop in prices a buying opportunity.
An explanation for the Danish fund selectors’ overall bullish sentiment might be their positive macroeconomic outlook, with 85% of respondents expecting the Danish economy to improve, compared to 60% to 71% in the other Nordic countries.
Platinum members can see the latest Danish data here