Corbin Advisors Finds Investors Continue to Expect Strong Growth and Remain Committed to Equities Despite Increasing Headwinds but Pressure is Mounting

Corbin Advisors, a specialized investor relations (IR) advisory firm,
today released its quarterly Inside
The Buy-side® Earnings Primer report, which captures
trends in institutional investor sentiment. The survey is based on
responses from 87 institutional investors and sell-side analysts
globally, representing over $1.0 trillion in assets under management.

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https://www.businesswire.com/news/home/20180711005638/en/

(Graphic: Business Wire)

While surveyed investors expect a strong 2Q18 performance based on
elevated growth expectations and the ongoing impact of tax reform,
tariffs and trade wars continue to serve as wild cards. Indeed, nearly
80% express concern about the potential for U.S.-driven levies to
reverse global economic momentum and, when combined with inflation, have
led to a high degree of uncertainty across the globe. While these
headwinds have dampened the outlook – only 39% of survey respondents now
expect U.S. economic improvement over the next six months, down from 59%
last quarter – investors are keeping the faith in that 61% remain Somewhat
to Very Confident in companies’ ability to largely offset
rising input costs and/or tariff impacts through pricing actions and 70%
report holding steady or buying equities, a slight uptick from last
quarter.

“Headline noise could become more than noise, particularly on trade,”
commented Fla Lewis, Chief Investment Officer at Weybosset Research &
Management.

Still, near-term expectations remain strong and while 80% of investors
believe we are Mid-to-Late to Late in the economic cycle,
55% believe we won’t peak until 2019 or 2020. To that end, fewer than
50% classify U.S. equities as Overvalued, a decrease from 57%
sequentially, and 35% see room for expansion, compared to 22% last
quarter.

“Heading into the second quarter earnings cycle, expectations for growth
remain strong but pressure is mounting as headline noise around tariffs
and trade wars will likely become a reality in the second half of the
year,” commented Rebecca Corbin, Founder and CEO of Corbin Advisors.

“Companies are stronger and better positioned than ever and while the
majority of our survey respondents are confident that management teams
will be able to largely offset headwinds via pricing actions, it is
increasingly becoming more challenging to grow profitably. As the cycle
stretches on, we have identified some gradual erosion in sentiment but
positive views remain elevated, indicating more room to run
notwithstanding some exogenous shock, such as an all-out trade war,”
added Ms. Corbin.

Pronounced headwinds have rippled across the globe as all regions saw
pullbacks in positive sentiment. The Eurozone, Brazil and U.S. saw the
most notable decreases, marking the first time since 3Q16 that neither
the Eurozone nor U.S. were designated as the top two most likely to
expand. India and Southeast Asia are now the top picks for economic
improvement over the next six months.

As for sector views, Technology garnered the highest level of optimism
for the second consecutive quarter and Energy and Consumer Discretionary
saw the largest increases in bulls due to rising oil prices and
increasing confidence, respectively. For the seventh consecutive
quarter, Utilities and REITs garnered the most bearish views, while
Telecom saw the largest spike in negative sentiment.

Since 2006, Corbin Advisors has tracked investor sentiment on a
quarterly basis. Access Inside
The Buy-side® and other research on real-time
investor sentiment, IR best practices and case studies at CorbinAdvisors.com.

About Corbin Advisors

Corbin Advisors is a specialized investor relations (IR) advisory firm
that partners with C-suite and IR executives to drive long-term
shareholder value. We bring third-party objectivity as well as deep best
practice knowledge and collaborate with our clients to execute sound,
effective investor communication and engagement strategies. Our
comprehensive services include perception studies, investor targeting
and marketing, investor presentations, investor days, specialized
research, and retainer and event-driven consulting.

Inside
The Buy-side®, our industry-leading research
publication, is covered by news affiliates globally and regularly
featured on CNBC.

To learn more about us and our impact, visit CorbinAdvisors.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20180711005638/en/

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