Euro “will not collapse” say 81% of intermediaries at Schroders event

Most of the 120 intermediary clients at a recent investment conference hosted by Schroders felt that the euro will survive.

The intermediaries came from across Europe, the Middle East and Latin America.

When asked for their view of the euro, 81% responded that they did not see the currency union collapsing despite ongoing problems in the eurozone.

However, 59% of respondents also said that European structural problems are the most pressing global macroeconomic issue, followed by US structural problems, 22%.

There was also a strong majority, 62%, agreeing that the best path for Europe would be for Greece to be put through a managed default, including recapitalisation of banks at the national level.

When asked about their preferred asset classes currently, respondents picked gold and German, UK and US governemnt bonds.

Almost 40% said they believed the price of gold could hit $2,000 within two years.

Half said German, UK and US bonds would yield 2-4% in five year’s time, with 31% believing they will yield 4-6% in that period.

Peter Beckett, head of International Marketing, Schroders, said it was not surprising the intermediaries had tended towards safer assets in light of the current invesment climate.

“Gold in particular offers important diversification as well as protection against uncertainty, inflation and concerns over the value of the dollar, sterling and euro, which are all prevalent in current markets,” he said.

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