UK investors on the other hand expect property to slightly outperform equities.
Equities, alternatives and property all have their backers
The survey polled more than 11,000 investors in 22 countries across the globe on attitudes to investing and expectations for 2014 and the decade ahead.
German, French, Spanish and Swedish investors think equities will also be the best performing asset class over the next 10 years, whereas Italian and UK investors think alternatives and property respectively will be the best performing asset class over the forthcoming decade.
Expectations for precious metals, on the other hand, fell in Germany, Italy, Spain, France and the UK when compared to 2013 figures, whereas expectations for equities rose year-on-year in all five countries.
Jamie Hammond, managing director, Europe at Franklin Templeton Investments, said: “Investors in Europe have a positive stock market performance outlook for 2014. We think their renewed enthusiasm for stocks is encouraging, as many investors will need the higher potential returns stocks have historically provided over the long term in order to reach their financial goals. We are also pleased to see that fewer European investors are adopting conservative investment strategies versus last year.”
And our survey said…
In the long term, the greatest risk investors run is remaining too risk-averse for too long, in Hammond’s view.
“A smart approach to managing investment risk is not to categorically avoid risks but to ensure that risks taken are intended, understood and appropriately compensated with an eye on achieving longer-term investment goals.”
The survey also found German, Spanish and Swedish investors think the best equity opportunities are in their home markets this year and in Asia over the long term. Conversely, investors in the UK, Italy and France think the best equity opportunities will be in Asia both this year and over the long term.
Among European countries, French and Italian investors are the least optimistic about equity opportunities in their own market, both in 2014 and over the next 10 years.
Fixed income return expectations are more varied, according to the research. While investors in countries such as Poland, Germany and Sweden think the best fixed income opportunities are in their home market in 2014 and over the next 10 years, many others are looking to Asia for fixed income opportunities over the next decade.
The survey found European investors’ top concerns about investing in Europe in 2014 include the eurozone debt crisis, low interest rates, and unstable domestic political outlook.
