Poll reveals optimistic outlook for 2010 investment market

18 December 2009

The majority of fund managers are optimistic about the investment market’s prospects for 2010, a survey has shown.

A study by the Association of Investment Companies (AIC) revealed that nearly three-quarters of fund managers believe the markets will rise in the new year.

Half of those questioned thought equities would be the best performing asset while more than a quarter chose gold.

Low interest rates and better than expected growth were the main reasons behind fund managers’ optimism.

The recession and low growth were deemed the greatest threats to the markets.

Annabel Brodie-Smith, communications director of the AIC, said: "After a strong market revival this year, fund managers are generally optimistic about the prospects for 2010, with most expecting to see markets rise and the FTSE end the year in positive territory.

“Interestingly this year's ‘gold rush' is tipped to continue with over a quarter of managers predicting that gold will be the top performing asset.”

She added: “With the recovery underway resources are tipped to be the best performing sector next year and emerging markets are expected to continue their run of outperformance.”

Further findings from the study showed that fund managers were divided over whether to change their gearing during the next six months.

More than a quarter plan to adopt a ‘wait and see’ approach in the first half of 2010.

By Jim Ottewill

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