ZEW Survey Among Financial Market Experts – Stocks Will Become More Attractive to Investors in 2012

In 2012 shares will again become more attractive to investors and corporate bonds will become more important. The demand for real estate will be as strong as in 2011, whereas sovereign bonds will lose their image as secure investments. These are the findings of a survey conducted by Centre for European Economic Research (ZEW)in Mannheim among financial market experts in December 2011. Experts were asked to assess the attractiveness of different investment classes in 2012 compared to 2011.

With 62.8 per cent, nearly one third of the experts surveyed by the ZEW expect that in 2012 shares will have a more significant role in investment portfolios. Also the importance of corporate bonds will ascend, so far the assessment of 42.9 per cent of the interviewees. Regarding sovereign bonds, 71.4 per cent of the experts expect that investors will act more conservatively. With the deteriorated debt crisis characterising 2011 and with the ongoing discussion on the role of rating agencies, the experts’ assessment indicates that investors regard sovereign bonds too risky on the long run. 30.4 per cent of the experts are convinced that investments in real estate will be more attractive during the next year, whereas the majority of 50.6 per cent does not think that the demand for real estate will ascend, compared to 2011. Concerning raw materials and foreign exchange, the majority of the experts believe that the investors’ strategies will remain the same.

For further information please contact

Zwetelina Iliewa , Phone +49 621/1235-346,  E-mail iliewa@zew.de