According to February edition of the Expert Investor Fund Manager Sentiment Survey, UK equities now are the lowest-ranking asset class in terms of return expectations after government bonds.
Sentiment towards the asset class showed its largest monthly drop on record, and is in negative territory for the first time since the Brexit referendum last June. The number of asset managers believing the asset class will post losses of more than 5% over the next 12 months is now double the figure of those expecting positive returns of a similar magnitude.
The bearishness towards UK equities, which follows a record run for UK equities since the Brexit referendum as the asset class was boosted by the fall of the pound, contrasts sharply with asset managers’ bullish expectations for European equities.
