Investors 'extremely bullish' on emerging markets
The percentage of those bullish on global emerging markets, especially for the short term, has jumped in a survey by Societe Generale
The percentage of investors that have a bullish near-term (over the next two weeks) view on emerging markets jumped to 84.4% this month from only 41.8% last month in the survey carried out on 90 of the banks clients in Asia, Europe and the US.
Societe Generale, whose sample comprised 45 real-money investors institutional investors such as pension funds or insurance companies - and 45 hedge funds, notes that investors are less bullish over the medium term relative to the near term, with 72.2% of clients bullish when looking at a three-month horizon.
There has also been a marked increase in the number of investors who believed that the outlook for global emerging markets would actually worsen from two weeks to three months, Societe Generale said.
Around 53% of investors foresaw a deterioration of the outlook over three months relative to two weeks, with only 28% of the total predicting the opposite.
This of course reflects some uncertainty about the sustainability of the bullish market backdrop, with some investors being bullish short-term but switching to neutral or bearish over three months, the bank said.
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The technical picture has improved, with 37.8% of total investors feeling that they are under-invested against 31.1% that are over-invested.
This is potentially positive as it points to the need for higher risk-taking, Societe Generale said.Among hedge funds, 51.1% are perceived to be under-invested versus 36.7% over-invested, the survey showed.