83% of institutional investors believe that a global financial crisis is a possibility. In turn, 60% expect the next severe crisis to occur in the next three years. This is shown in a new research from Block-Builders.net.
As the information reveals, around 80% of major investors believe that markets have not yet sufficiently priced in the long-term risks posed by the Coronavirus crisis.
More than half see the advantage of a defensively oriented portfolio. Institutional investors remain largely unanimous in their view that, despite all the risks, securities from the Asian region have great growth potential.
One of the reasons for this is the fact that countries such as China have got a better grip on the pandemic and their economies are now correspondingly growing much faster.
Meanwhile, the scars left by the pandemic on business owners’ coffers are becoming ever clearer. The situation is most critical in the case of the hospitality industry, where 19% of businesses report having only four weeks of cash reserves.
Across all sectors, 11% of entrepreneurs say they only have reserves for just under four weeks.
“Despite all the risks, many stocks are still trading at all-time highs,” adds Block-Builders analyst Raphael Lulay.
“Whether we are already in the midst of a speculative bubble remains to be seen. Many market participants continue to see the stock market as almost without alternative”.