In the United Kingdom, investors woke up on the right side of the bed this year, as a new survey that was conducted by Lloyds Private Bank has revealed that sentiment is higher as compared to any point during 2017.
Overall sentiment is currently at nine percent, meaning that nine percent more investors are now positive than negative regarding the state of markets this year.
Shares in the United Kingdom saw the highest uplift in optimism, as sentiment rose to 12.3 percent. This was closely followed by equities in the United States, which saw popularity grow by 6.3 percentage points to 11.3 percent.
chief investment officer at Lloyds Private Bank, Markus Stadlmann, stated: “Although UK and US shares both scored highest this month for sentiment, we see contrasting valuation scores between the two.
“In our view, despite some good growth signals emerging from the US where tax cuts should further support corporate growth in 2018, we currently think US equities are expensive. Conversely, we see UK equities – and also emerging market equities – as being cheap.”
He added that Japan was the “one to watch” of the bank, stating that the economy was in “rude health” and is becoming less dependent on the central bank.
The government and corporate bonds of the United Kingdom both benefited from a more positive outlook of investors, as they observed attitudes towards them increase by 2.9 percentage points each. For government bonds, this was a huge turnaround from negative sentiment, as they fell as low as negative 9.8 percent in July of last year.
Further afield, sentiment was able to improve across the board for shares in the Eurozone, Japanese shares and some emerging market shares.
In terms of performance, emerging markets has observed the biggest boost since last January, followed by shares in the United States and Japanese shares. Month on month, stocks in the United Kingdom observed the biggest improvement in terms of performance.