A bullish sentiment prevails among Barclays Stockbroker clients, the firm has claimed.
Two-thirds of clients polled by Barclays Stockbrokers say that they feel confident to go into equities in 2009.
The survey also found that 17 percent expect commodities to generate the best returns this year, while just 15 percent were taking the conservative strategy of expecting returns to be highest from government and corporate bonds. Cash savings accounts, by contrast, are likely to return very little in 2009, with the Bank of England having slashed its lending rate to an all-time low and many instant-access savings accounts offering less than half that rate.
Nevertheless, equity and commodity investors face far-from-certain returns, due to the continuing market volatility still being experienced from the credit crunch. The FTSE 100 stock index retreated by over 30 percent in 2008, while wholesale crude oil dropped from July's all-time high of $147 per barrel to under $40 towards the end of last year.
Henk Potts, equity strategist at Barclays Stockbrokers, said: "So far in 2009, the world has turned out much as we suspected it would. Policymakers will have to use every tool in their toolbox to turn things around … ultimately, they should manage to get the global economy back off its knees again. Once the shoots of economic recovery start to appear, risky asset classes should recover somewhat."
Barbara-Ann King, the firm's head of proposition, added: "Despite the market volatility experienced over the past year it is encouraging to see our clients retain their confidence in the stock market for this year, with nearly two-thirds predicting shares will generate the best returns of all asset classes in 2009… Not all clients are so bullish for the year though, 15 percent remain more cautious believing lower-risk gilts and bonds will offer the best returns this year."
