Investors Bullish on Markets, Wary of Regulation

The world’s most influential investors are gaining confidence in the global outlook, and are concerned about a bubble in China and over-regulation in the U.S., according to the Bloomberg Global Poll, a quarterly survey of economic, financial and political attitudes among BLOOMBERG PROFESSIONAL service users worldwide.

Forty-three percent of investors polled view the international economic outlook as improving, up from 37 percent in October. The optimism cuts across all regions, with respondents in Asia, Europe and the U.S. saying the global situation is getting better. When investors were asked the one or two markets that offer the best opportunities this year, 30 percent chose the U.S., just behind China at 33 percent--down from 44 percent in an October survey--and Brazil at 32 percent. Sixty-two percent of those surveyed view China’s economy--the world’s fastest-growing major economy--as a bubble.

Respondents say lawmakers could damage the U.S. economy if Congress clamps down too tightly on the Federal Reserve. More than half of the investors polled said increased oversight of the Fed would open the U.S. central bank to political influence and hurt its ability to conduct monetary policy. Investors also fear proposals for taxes on bonuses, with 60 percent of respondents saying new fees on banks and bank executives are likely to prompt some companies to head for other shores, according to survey results, which are available at www.bloomberg.com.