Investment Professionals Divided Over Impact of Elections
NEW YORK, Sept. 24 /PRNewswire/ -- Wall Street investment professionals
believe the fortunes of the U.S. stock market are more closely tied to the
Iraqi war than the upcoming Presidential election. More than 60% of 236 sell
side analysts and research professionals surveyed by Broadgate Consultants,
Inc. this week said the conduct of the war in Iraq will have a greater impact
on future stock market performance than the election result.
While 58% of respondents expect corporate earnings to rise over the next
12 months, expectations of interest rate hikes and higher energy prices have
created underlying overall uncertainty. Over the next 12 months, 89% said
interest rates will rise; while 9% said they will stay the same and 2% said
they will decline. Over the same period: 39% of respondents believe energy
prices will decline; 33% believe they will stay the same; and 28% believe they
will rise.
Reflecting jitters about the potential impact of higher interest rates and
energy prices on public market valuations, almost two-thirds of respondents
(65%) believe that returns from alternative asset classes such as private
equity and venture capital will exceed those from public equity investments
over the next year.
Sixty percent of respondents believe the market will be more volatile
leading up to the election. Wall Street is spilt about whether a Bush or Kerry
victory would be better for the stock market with a little over half the
respondents saying that a Republican president would help share prices.
About Broadgate Consultants, Inc.
Established in 1987, Broadgate Consultants provides capital markets
research, strategic corporate and capital markets communications advisory
services to public companies and private equity firms and their portfolio
companies. More information about Broadgate can be found on the Internet at
http://www.broadgate.com.
SOURCE Broadgate Consultants, Inc.
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Related links:
http://www.broadgate.com
CONTACT:
Tom Franco,Broadgate Consultants, Inc.,
+1-212-232-2222
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