Equities remain best bet despite currency distraction

Financial Sentiment Tracker, July 1, 2012 - June 27, 2013

 June 28, 2013. New York – Despite preoccupation with currency markets in June, equities still offer the best reward for risk in the eyes of financial analysts quoted in opinion-leading business media, according to new research from Media Tenor International.

“There´s been increased interest in currencies in June,” says Racheline Maltese, a researcher at Media Tenor, “but that doesn´t mean currency market performance is likely to lead to positive returns. Rather, analysts currently strongly favor equities despite caution related to market volatility.”

All stock markets are not created equal, however. “For investors who want to remain active in the Chinese equity markets, short selling is probably their best option,” says Maltese, noting significant negativity towards China amongst financial analysts in light of a stagnating economy and legal concerns. “Overall, there´s not much enthusiasm for emerging markets. India is only slightly positive, and the upheaval in Brazil has made that market unattractive. Analyst interest in Australian and U.K. stocks though is clear,” she adds.

Quoted analyst statements on macro risks underscore the uncertainty in the market, Media Tenor found. “On one hand, analysts are increasingly favorable on the impact of government policy decisions on investments. On the other, economic conditions continue to weigh negatively. Either the analyst vision of long-term optimism will be realized, or there is significant investor disillusionment to come as the promised recovery in developed markets never quite seems to arrive,” says Maltese.