Investment professionals worldwide report greater optimism over economic prospects for the coming year but do not express confidence that the integrity of capital markets is improving, according to a survey.
The CFA Institute 2014 Global Market Sentiment Survey finds that 63% of all respondents expect the global economy to expand, up from 40% from last year’s survey. In Canada, 62% said they expect the global economy to expand.
However, 54% point to a lack of ethical culture within financial firms as the factor that has contributed the most to the current lack of industry trust.
“The number of members who expect the global economy to expand has nearly doubled in the last two years; however, this is no time for those in finance to become complacent,” says John Rogers, president and CEO of the CFA Institute. “The survey reflects that investor trust has been eroded, and, in order for the financial industry to be an extraordinary force for good, we must embrace ethical behaviour at all levels.”
In Canada, economic optimism is lower, with just 47% expecting the economy to expand this year.
Canadians are split on the likelihood of a local financial bubble. While 43% of respondents do not anticipate a financial bubble, the exact same amount report they do anticipate a financial bubble in 2014.
There’s a marked increase in optimism for equities. Seventy-one percent of all members this year identified equities as the asset class most likely to perform best, a big jump up from 50% in 2013. In Canada, 69% of respondents identified equities as the likely best performing asset class for 2014.