Corbin Advisors' Quarterly Inside the Buy-side Research Featured in Opalesque Article

July 16, 2019

Institutional investors express concerns on geopolitical tensions and a slowing global economy

Source: Laxman Pai, www.Opaleque.com

Institutional investment managers are concerned slowing global growth could hurt returns, but most do not think the U.S. is headed for a recession in the next twelve months.

According to a survey from Corbin Advisors, the neutral to bearish or bearish sentiment, which fell to 33% last quarter, increased to 53%.

Perceived management tone is also described as slightly more cautious, with 34% of survey respondents characterizing executives as neutral to bearish or bearish, up from 27% last quarter.

Top concerns center on geopolitical tensions and a slowing global economy; 65% express high concern with trade wars while 54% believe a favorable resolution to the U.S./China trade dispute over the next six months is only somewhat likely.

The majority, 62%, notes the U.S. economy is losing steam but greater than 70% do not believe we will enter a recession in the next 12 months.

"The economy is losing steam; tax reform effects are fading, trade concern is causing Capex to slow down and margins are under pressure," noted Max Gokhman, head of the asset allocation at Pacific Life Fund Advisors.

Further contributing to increasingly cautious sentiment, 65% express high concern with trade wars and 54% believe a favorable resolution to the U.S./China trade dispute over the next six months is only somewhat likely.

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