'Hype' indicators point to equity recovery in Q1

Uptick in investor sentiment

Laura Dew
clock • 3 min read

A divergence in investor behaviour is pointing towards a recovery for equities in Q1 2019, according to research by Fidante Partners, with sentiment and fund flow data indicating the asset class is no longer in 'despondency' territory.

In its quarterly Hype Cycle report, which analyses investment hype in financial markets via Google searches, ETF flows and the premium over the net asset value of relevant investment trusts, the firm said the basis for its equity recovery prediction was rooted in investor behavioural patterns. What will December's sell-off mean for investors in 2019? It said that although retail investors were being "excessively pessimistic" about equity markets, institutional investors had been putting money to work to benefit from recent lower prices. Historically, trends like this indicate a boost ...

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