Investors have a “low conviction preference” for stocks at present, Morgan Stanley says in a strategy note, adding that the majority of people who attended its recent global investment seminar expect the MSCI Europe equities index to deliver a 0-10 percent price return over the next 12 months.
Morgan Stanley held the seminar between June 14-16. It says that the findings from people who attended the event show that although 55 percent chose equities as their preferred asset class for the next 12 months, this was the lowest score at this conference since 2008 and half of attendees said their current risk exposure was lower than average.
At the end of the event, 44 percent of investors said they were now more negative on equities, compared to 20 percent who had become more positive, adds Morgan Stanley.
Morgan Stanley says the U.S. remains investors’ preferred equity region over the next 12 months, followed by Europe, then emerging markets regions and then finally Japan as the least preferred equity region.
Investors’ preferred equity sector for the next 12 months is commodities, followed by financials, adds Morgan Stanley.
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