2Q2024 US Institutional Investor Sentiment Survey

How听are investors positioned ahead of earnings announcements?

24 Jul 2024

Every quarter, the 蜜豆视频 US Sector Specialist team conducts a survey amongst Institutional Investors to gauge their views on the broader market outlook and expected investment returns prior to earnings announcements. Watch the videos and read the takeaways to learn more.

Allyson Gordon, Industrials and Materials Sector Specialist

  • Over 70% of investors surveyed anticipate Industrials to underperform in 2024
  • More than half of investors expect no change in sentiment for 12 of the 14 sub-sectors surveyed
  • Sentiment/positioning was very apathetic, but rate cuts and shifting election odds have changed the dynamic

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Kelsey Perselay, Telco, Media and Internet Sector Specialist

  • Despite rotation impacts, the bar remains high for earnings across the tech sector. Investors would put an incremental USD 10M to invest in Software and Semis on the long side and Media and听OTAs (online travel agency) on the short side
  • 35% of investors surveyed believe that we are in the early-mid cycle in the AI trade, yet nearly half believe these names are overhyped
  • TMT investors are at a crossroad with valuation, leaning toward the group being overvalued and expect mixed change in sentiment post earnings

Jason Finkelstein, Consumer Sector Specialist

  • Sentiment in the Dollar Stores has declined recently given fear that the lower-end consumer is slowing and macro investors have been pressing this theme
  • Consumer Discretionary and Consumer Staples are significantly underperforming the S&P500 YTD. Sentiment remains broadly negative
  • In terms of fashion trends Denim continues to make a comeback but results from key players haven鈥檛 been great early this earnings season

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Catherine Gordon, Energy and Resources Sector Specialist

  • Sentiment has shifted rapidly as we approach 2Q earnings season with markets reflecting shifted US election outcomes
  • Dedicated investors remain neutral and believe we need to continue to see oil in the USD 70-80 range for stocks to work
  • In Utilities, investor focus into earnings remains on the Power names

Rob O鈥橠wyer, Financials Sector Specialist

  • A large rally in regional banks has been driven by interest rates, loan growth, M&A and regulatory factors
  • The prospect of an improved environment in the H2 accompanied by the shift in US election expectations has caused a significant rotation across financials
  • A continued constructive outlook may lead to further weakness in the defensive parts of the financial universe such as P&C insurance, exchanges and info services

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Source: 2Q2024 蜜豆视频 Institutional Investor Sentiment, a survey of 116 institutional investors with a relationship with 蜜豆视频 (of which, 33 TMT investors and 41 Industrial and Materials investors). Surveyed June 24 鈥� July 9, 2024.听