Investors Still Like Stocks, Managers Like Home Countries
Interesting article this morning from Reuters, showing that fund holders still favor equities over bonds and cash:
Surveys of 44 leading fund management companies in the United States, Japan, Britain and continental Europe showed average stocks holdings at 62.0 percent, barely changed from 61.9 percent in November.
Bond holdings were unchanged at 31.4 percent and cash remained steady at 3.9 percent. Property and alternative investments made up the remainder.
Sadly, fund managers still seem bound up by home-country bias:
The polls also showed that many fund managers were favoring domestic stocks. U.S. investors, for example, lifted exposure to North American stocks while Japanese fund managers edged their Japanese stock holdings higher.
. . .
European fund managers cut U.S. stocks in favor of euro zone equities in December and remained bullish for stock markets overall heading into 2006.
Anybody want to buy these "professionals" a Globalization clue?