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Investors bearish on economy, value long-term creation over short-termism – survey

Most investors believe that a recession is imminent and want companies to prioritize long-term value creation over short-termism, results of a survey by Boston Consulting Group said.

Results of BCG's 10th annual survey showed that 73% of respondents expect a recession within the next two years, up from 53% during the previous year's survey. Sixty-seven percent said they believe markets are overvalued, about the same from 2017 (68%).

Ultimately, 82% of respondents want companies to prioritize long-term value creation over short-term results. Nearly half (48%) actively consider environmental, social and governance factors in their investment decision-making processes.

The survey also revealed that 27% of respondents are bearish or extremely bearish on the market's potential over the next 12 months, up from 20% in 2017.

Nearly two-thirds (64%) cited market overvaluation as the reason for their bearish outlook. Nearly half (48%) of those bearish about the future cited interest rates as the root cause for their negative outlook and 23% pointed to concerns about global free trade and trade balances.

Conversely, a third (33%) of respondents remain either bullish or extremely bullish about the market's potential for the next year, down from 46% in 2017. Of those bullish about the future, 45% cited U.S. deregulation and tax reform as the reason for their optimism.

The survey was conducted in October, with 260 investors managing more than $500 billion in assets responding.