The survey of 300 advisers found that respondents rated their confidence in the local economy at an average of 6.2, on a scale of one to ten (where ten was the highest). In comparison, they gave the global economy an average of just 5.4.
“Despite the continuing turmoil in world markets, there are areas of strong economic activity, particularly in the developing economies and Asia, which present some great opportunities,” said Phil Oxenham, marketing manager at Skandia International.
One-third of respondents said global contagion was the biggest threat to their local economy, while other concerns included inflation (24%), unemployment (8%) and government spending cuts (7%). Some 37% said clients had become more risk averse over the previous six months.
Regarding investment, about a quarter of those polled said that emerging market equities would outperform other major asset classes over the next 12 months, followed by gold (20%). Despite their bullishness on gold, 24% were concerned that the price of the metal was “heading towards bubble territory” – a higher proportion than for any other asset class.
The survey was conducted in July and attracted responses from advisers based in Hong Kong and East Asia (46%), the Middle East (26%), Europe (14%), Africa (9%) and the UK (5%).
