U.S. Investors Biggest Concerns for 2015
January 16, 2015

According to the recent CFA Institute Survey of Global Market Sentiment, American investors were bullish about U.S. investments in 2014, but in regards to prospects for global economic growth in 2015 they remain cautious. The organization surveyed 5,259 of its global members and compared the results from investors in different countries. Although the World Bank expects GDP to grow 3.4%, US investors are less optimistic about it and predict global GDP will only grow by about 2%. Investors in other countries are more optimistic, but Americans are concerned with European economic difficulties, slow growth in emerging markets, and slowdowns in China.
U.S. CFA Institute members were asked what are the greatest risks to global GDP and investors most often cited political instability followed by economies in weak developed markets. Global investors also cited political risks, such as secessionist and nationalistic movements, as the most underestimated risk that could have a negative impact on global capital markets over the next five years. While Summit Place acknowledges these geopolitical risks, we believe they will be manageable in 2015. Currently the strengthening dollar and plummeting oil prices may fuel potential instability, but they are also offering new investment opportunities for long term market returns.
According to the survey, Investors don’t view global risks as the only issues effecting outlook on global GDP; there are internal issues they feel need to be addressed as well. There is a continued lack of trust in the financial industry. Members ranked market fraud and the integrity of financial reporting as top concerns. U.S. investors would like to see improved regulation and oversight of global systematic risks, and a zero tolerance policy by top management for ethical breaches. Liz Miller is a CFA charterholder, and the entire Summit Place firm embraces the CFA Institute’s ethical standards of practice reflecting our commitment to our clients and to improving the integrity of our profession.