Institutional investors' expectations are positive for 2014, although overall sentiment is not as optimistic as last year, a new survey by Commonfund found.
Investors expect to see their assets grow by a median 7% over the next year, with a 6.5% average gain forecast for the S&P 500 index, according to the 2014 Commonfund Investor Outlook Survey.
Last year, investors had a median forecast return for investments of 8%. In this year's survey, investors expect their assets to grow by a median 8% annually in the next five years.
“I think any time you come out of a 32% return from the S&P 500 (in 2013), I think everyone realized markets don't go up in straight lines,” said Keith Luke, president of Commonfund Securities, Commonfund's broker-dealer subsidiary, in a telephone interview. “There was a very positive outlook from our audience, very positive, specifically to the U.S. economy.”
Fears regarding a European Union crisis, as well as a budget or debt impasse in Washington are significantly lower than last year.