The 15 charts revealing wealth managers' key investment calls
With all the talk of a looming sell off in risk and the uncomfortable rise in bond yields, we ask our readers where their convictions lie in our latest wealth manager survey.
Business has been pretty rosy for firms as they sorted themselves out in the aftermath of the credit crunch. However, none of our readers expect a 'significant' rise in corporate profits over the next 12 months, although the majority expect them to improve.
Likewise the majority expected a more measured rise in global growth, with none anticipating a fall in growth.
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The majority see little change in investor sentiment over the next 12 months, while a fifth believe it could worsen.
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With the inflation/deflation debate in full swing, 56.5% expect prices to hold firm and 34.8% forecast a rise. Only 8.7% see a fall in the cost of living.
So how exactly are discretionaries allocating assets against these backdrops.
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US equities have been at the forefront of the rush to risk assets and just under half intend to keep an overweight exposure to the world's biggest economy over the next 12 months, although they plan to reduce their weighting.
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Meanwhile only 40% expect to hold an overweight exposure to UK equities, a fall from around half in the previous quarter.
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Meanwhile Abenomics continues to generate plenty of excitement, with around 50% intending to employ an overweight in Japan.
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Europe will be one of the critical calls over the next 12 months, with all eyes on how the ECB will tack the threat of deflation. With some much uncertainty surrounding the continent, the majority are keeping a neutral.
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And after a really tough period it would appear the clouds are lifting above emerging markets as nearly 60% of our readers look to move overweight, a significant increase on the previous quarter.
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Property has been a shelter for income seekers over the last few years, but wealth managers believe better opportunities can be found elsewhere. The majority remaining neutral to the asset class over the next 12 months.
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Wealth managers continue to give developed world corporate debt a wide berth, with an handful going overweight.
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This trend is also reflected in asset allocations towards developed world sovereign debt.
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Meanwhile, a small portion of our readers anticipate marginally increasing exposure to emerging market world debt for the time in 12 months. However, the vast majority remain bearish to the asset class.
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This sentiment is mirrored for local currency debt.
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Finally, a little more than 20% feel alternatives are a good way to exploit current market conditions.
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