New research from Fulcrum Asset Management indicates a divergence in sentiment between UK and US professional investors regarding the investment outlook for the coming year.
The study, which took into account perspectives from a range of financial professionals, including IFAs, wealth managers and institutional investors in the UK, alongside their US peers such as registered investment advisors and other financial advisers, revealed that 48% of UK investors remain optimistic about the investment scenario for the next year. This contrasts with the US, where optimism stood at 42%.
Interestingly, pessimism in the investment outlook was greater in the US, with 46% of respondents expressing this view, as opposed to 40% in the UK.
A key observation from the data is the pronounced difference in sentiment based on age groups. Across both regions, youthful optimism prevailed among the 25-34 age group, where 58% expressed a positive outlook. This optimism, however, appears to wane with age, dropping drastically to just 17% amongst investors aged 55 and over.
Below is a snapshot of the sentiment based on age for both the UK and US:
| Age 25-34 | Age 35-44 | Age 45-54 | Age 55+ | |
|---|---|---|---|---|
| Optimistic | 58% | 45% | 47% | 17% |
| Pessimistic | 38% | 43% | 44% | 50% |
| No change | 4% | 13% | 9% | 33% |
Moreover, the study delved into investors’ perceptions of global macroeconomic shocks. American respondents generally displayed a more cautious stance, with 47% believing that such shocks would have a larger detrimental effect on markets over the upcoming 12 months compared to the prior year. Conversely, 43% of British respondents felt that the impact of these shocks would be diminished in the year ahead, a view shared by only 36% of their American counterparts.
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