News & Research

Investor sentiment has been on a declining path since late August in all markets we track, except in global emerging markets where the decline started only recently.

Investor sentiment continued to improve in all markets we track, except China and global emerging markets, which ended the week flat versus the previous week on geopolitical concerns. Sentiment is now moderately positive in all developed markets, while emerging markets and Asia ex-Japan remain close to neutral, lacking conviction one way or the other.

Olivier d’Assier, Head of APAC Applied Research at Qontigo, discusses his outlook for markets and navigating risks. He speaks with Shery Ahn and Haidi Stroud-Watts on “Daybreak Asia”.

Investor sentiment continued to recover in the US, Europe and global developed markets, ending the week positive in all three. Sentiment remains negative among investors in global emerging markets, Japan and Asia ex-Japan, with the latter falling back into a bearish mood.

Sentiment continued to recover in all markets we track as the Q2 earnings reporting season is having a positive impact on investors’ mood. The better-than-feared (so far) reports and guidance is lifting sentiment away from fears of a deep recession and towards hope for a mild and short one that could spare corporate profits.

The ROOF portfolios use sector and style ROOF Scores to construct sentiment-tracking portfolios designed to capture the returns from the implementation of a bullish or bearish strategy. In a difficult first half of the year, aligning portfolios with the overall negative sentiment in the market generated significant outperformance relative to ‘holding’ the entire market or ignoring the average investor’s outlook.

Investor sentiment staged a recovery in most developed markets but continued to weaken in Asia ex-Japan and Japan, while managing to remain positive in global emerging markets and China.

The ROOF methodology can capture the ‘sentiment’ of a portfolio relative to its benchmark. We run ROOF scores to determine the risk appetite of investors holding four portfolios aligned with respective Sustainable Development Goals.

Investor sentiment declined across all markets we track last week, ending bearish in the US, global developed markets and Europe.

Sentiment declined sharply last week, becoming negative in Asia ex-Japan, Japan and developed Europe, with the latter ending bearish for the first time since early April. We continue to see a divergence of sentiment between developed- and emerging-market investors, with the former remaining bearish and the latter increasingly bullish.

Sentiment remained negative in the US and developed Europe last week, and bearish in global developed markets. Hopes for further monetary and fiscal stimulus out of China managed to keep sentiment positive in Asia ex-Japan, global emerging markets and China, for the time being.

Sentiment continues to be poor or bearish among developed-markets investors, except in Japan, where the weak yen and dovish BoJ are underpinning a positive mood.