Greek investors appear cautiously optimistic for 2014, but they are hesitant to put their money where their mouths are. They estimate the domestic economic recovery to be weak, so are looking at foreign real estate and investment markets.
For the first time, Greek investors participated in the Global Investor Sentiment Survey (GISS), conducted by Franklin Templeton, which polls 11,113 investors from 22 countries. The Greeks expressed their views on the economic situation in Greece and spoke of their expectations for 2014 and the following decade.
The survey reflects an intense reluctance to invest in Greece, since about 60% of survey respondents expressed their intention of adopting a more conservative approach during 2014. It appears that the investors’ expectations of the returns on their investments are also conservative. On average, Greek investors expect a return of 7.5% in 2014 and 13.8% during the next decade. While these forecasts for this year are quite modest, they exceed the pan-European average of 6.8%.
Such Hellenic investor optimism is driven not by the promise of profits at home, where interest rates are not expected to climb in 2014, but by the lure of greater returns from abroad, especially central and eastern Europe, Asia, USA and Canada.
On a global level, two-thirds of investors believe that the best opportunities in equities and fixed income securities can be found beyond their country’s borders, a view shared by 80% of Greeks with money to park.