Investment Strategies
Investors Warm To US Equity Market - Barclays Stockbrokers
Investors are growing more bullish about the prospects for the
US stock market, according to research among 1,683 people in a
recent poll by
Barclays Stockbrokers, part of UK-based bank Barclays.
Almost a quarter of respondents – 24 per cent – said the
US equity market has growth potential and a further one in ten –
11 per cent – said the
US equity market is a good value buying opportunity.
In a number of recent commentaries by wealth managers, strategists have said they favour US equities because the world’s largest economy is expected to be the first to recover after having been the first to go into recession.
But a significant number of investors polled by Barclays
Stockbrokers remain nervous: some 39 per cent of respondents said
the
US market is too volatile to invest in, and more than a quarter -
26 per cent - say
US markets will not deliver positive returns in 2009.
Coinciding with this survey, Barclays Stockbrokers has launched the US Top 500 Supertracker Investment Note, linked to the value of the US S&P 500 index, which runs with a three-year term and offers two times the rise in the value of the index. Full capital invested is repaid at the end of the product’s term so long as the index does not fall below 60 per cent of its starting level during the term.
“It is encouraging to see nearly a quarter of our clients remain
optimistic that the
US market has growth potential in 2009. The US market is
predicted to begin its recovery this year following the rapid
decline of the economy in 2008 according to research from
Barclays Wealth, and there are a number of investors who believe
now is the time to invest in this market,” Barbara-Ann King, head
of proposition at Barclays Stockbrokers, said.
Henk Potts, equity strategist at Barclays Stockbrokers, added: “Given stock prices’ leading properties, it is reasonable to expect a sustained pick-up as early as the second quarter. Looking one year out, we see an upside of 15 per cent for the S&P 500. The improved outlook for profits and diminished risk aversion should benefit equities.”
