Jan 22, 2020

Investors are getting bullish on Germany's economy

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Data: ZEW; Chart: Axios Visuals

Confidence in Germany’s growth outlook has continued to increase, with the latest survey of investor expectations rising to the highest in more than four years.

Details: The ZEW economic research index of expectations for the next six months increased to 26.7 in January, significantly exceeding economists' estimates. The gauge turned positive last month for the first time since April, meaning more respondents are optimistic about the future than pessimistic.

Go deeper: Private equity "plague" descends on Germany's elevator industry

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Fund managers are getting a bit more bearish

Bangladeshi workers preparing reinforcing steel at a construction site in Dhaka on Feb. 16. Photo: Mamunur Rashid/NurPhoto via Getty Images

Expectations of global growth were cut in half in the latest Bank of America survey of asset managers.

What's happening: The survey showed money managers are less bullish this month than in January, but had also cut their cash holdings to 4.0% from 4.2%, which was the lowest since March 2013.

Asset managers say the 2020 election is now the market's top risk

2020 Democratic candidates in Columbia, S.C., on Jan 20. Photo: Sean Rayford/Getty Images

With the "phase one" trade deal signed, major asset managers have taken their eyes off the trade war a bit and begun to focus on the upcoming U.S. presidential election.

Why it matters: The outcome of November's election is now investors' top concern, according to the results of Bank of America Securities' latest global fund manager survey.

Investors see stocks overvalued, recession looming

Illustration: Eniola Odetunde/Axios

An overwhelming majority of the world's asset managers think stocks are overvalued and expect a recession this year or in 2021, according to a survey released Wednesday by the Boston Consulting Group.

  • Many say "the current bull market is running on borrowed time."

Why it matters: The survey of more than 250 asset managers and analysts who oversee $300 billion at firms that collectively manage over $10 trillion shows the continued apprehension of investors from around the globe.