Downbeat expectations for share market
Some of the gloss has come off the Australian share market with 43 per cent of fund managers expecting zero or negative returns in 2008. Conducted by Russell Investment Group, the survey found that fund managers are the most cautious they have been since 2005 when the first survey was conducted, and that the only asset class viewed favourably is cash. Only 21 per cent of those surveyed expected double digit growth in the equities market in 2008, while 63 per cent expect market gains of 10 per cent or less. Even before the problems with property investment company Centro this week fund managers were wary of the listed property market. “It seems that continuing concerns about excessive listed property valuations are outweighing its traditional, defensive attributes,” said the report.