Private banks are becoming increasingly optimistic about the stock market, according to a report by Top 30 Super Allocators. The number of private banks that are overweight equities has tripled compared to the end of last year. This increase is due to company earnings showing no signs of slowing down and major economies remaining in good health.
The report found that 15 out of 27 chief investment officers were overweight equities as an asset class at the end of the first quarter this year, compared to only five out of 27 who held this view at the end of the fourth quarter in 2023. A year ago, only two out of 29 were overweight equities.
This shift towards overweighting equities reflects a positive outlook on the market and a confidence in the performance of this asset class. The investment convictions of Europe’s biggest private banks were collated to determine these findings. Overall, the increase in private banks being overweight equities is a clear indication of the optimism surrounding company earnings and global economies.
