Buy Side Sentiment Trending Favorably As 2Q14 Earnings Season
Kicks-off; Expectations Are High As Optimism Grows And Macro Concerns
Take A Backseat
Despite ongoing concerns about global growth and geopolitical events dominating headlines, investor sentiment has improved from the previous quarter. The majority of surveyed investors describes their outlook as bullish or cautiously optimistic and attributes their views to an acceleration in economic activity, a more positive executive tone, a pickup in M&A and continued accommodative monetary support by the Fed. Asserting that the “unbelievable liquidity” presents virtually “no alternative to stocks,” investors remain comfortable allocating capital to equities but express mild concern regarding potential market implications of a premature rate hike.
Valuations are primarily viewed as fair at current levels, with 47% of respondents unequivocally stating they are sustainable, up from just 18% in the last quarter.
Corbin Perception found that just over one-third of surveyed participants believe the Fed will raise its benchmark interest rate in the first half of 2015, with
Further, Corbin Perception’s ongoing research on best uses of excess free cash reveal dividends as the leading investor preference followed by reinvestment, similar to last quarter. Of note, desire for share buybacks and debt reduction fell quarter-over-quarter as valuations continue to look rich and the cost of borrowing remains low.
Since 2006, Corbin Perception has tracked investor sentiment on a quarterly basis. Inside The Buy-side® and other research on real-time investor sentiment, IR best practices and case studies are available at CorbinPerception.com.
Follow us @CorbinResearch
Excerpts from Inside The Buy-side®
Corbin Perception interviewed 50 global institutional investors across diverse industries and investment styles to capture current sentiment heading into the second quarter earnings season; selected findings include:
About Corbin Perception
Corbin Perception is a leading investor research and IR advisory firm assisting public companies with driving long-term shareholder value. Core advisory services include Investor Perception Studies, Investor Targeting, Investor Presentations, Investor Days and Strategy Communication.
To access the full report, visit our website: www.corbinperception.com/research-library
Source: Corbin Perception