Investors are confident U.S. equity markets will maintain their upward momentum this year, but a majority plan to diversify their portfolios and improve financial performance by investing in metals, currencies, foreign equities and other alternative global investments, EverBank reported Monday.
EverBank’s new survey of 300 individual investors found than 52% were looking outside traditional U.S. equities for performance in 2013.
Of these, 21% were eying investment opportunities in precious metals and another 21% international equities. Seven percent expected currencies to offer the best upside this year, and 3% liked international fixed income.
Fully two-thirds of the survey respondents, interviewed between Jan. 31 and Feb. 1 at The World MoneyShow Orlando, said they believed international investment positions had become more important in their portfolios than they had been five years ago.
“We’re seeing increased demand in products that give investors exposure to those diverse asset classes, but we believe that many investors can do more to diversify,” Frank Trotter, president of EverBank Direct, said in a statement.
“The reality is diversification is not as difficult or complex as many people believe, and we're seeing a growing awareness of the importance of building investment portfolios that include traditional U.S. equities, traditional fixed-income assets and a wide range of more nontraditional investment vehicles.”
EverBank said that with record-low interest rates holding steady, investors must decide how to manage their portfolios. Asked to identify the strategy they would most likely pursue during this low rate environment, respondents gave these answers:
- 31% said they would pursue new ways to add value to the cash positions in their portfolio
- 27% said they would seek out international investment opportunities
- 26% would look into real estate opportunities
- 15% favored currencies and other alternative investments.