Corbin Perception, a Hartford investor research and investor relations advisory firm, has released survey results painting a glum short-term future for the investment market. It says over half of people it surveyed see a “more bearish” outlook.
According to the firm’s Industrial Sector Sentiment Survey, there’s a cautious air to investments because of lower organic growth and earnings expectations in the second half of 2015. Investors are expecting valuation stagnation as 2016 projections begin to reset.
That air of caution happened relatively quickly. Corbin Perceptions’ survey has input from 52 investors and analysts globally who manage $1.8 trillion in total assets. In June they were neutral but attitudes changed because of concerns about China contagion as well as the continued negative impact of oil and gas.
The perception among the group surveyed is conservative planning is going to help companies weather the coming storm. “Investors acknowledge that companies that have planned conservatively and are focused on executing tight cost management and disciplined capital deployment plans, all else being equal, should weather the storm,” said Rebecca Corbin, founder and managing partner of Corbin Perception.
Attitudes towards China’s economic vitality continue to be more bearish, too. In the June survey results, 60 percent of investors expressed concerns about China’s economic growth. The more recent survey pegs that number at 80 percent.
The survey also found continued weakness in short-cycle indicators, such as U.S. industrial production, continued emerging market uncertainty and a more bearish management tone all dampen organic growth expectations for 2015 and degrade sector investor sentiment.
