A new survey from JP Morgan revealed 70% of investors have improved their expectations towards Europe since the beginning of the year, with a positive outlook over equities.

When asked which asset class will outperform over 2014, 48% of the interviewees believe equities will outperform, with another 28% of them believing private equity to be the other asset class winner over the next year.

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The study, conducted as part of the private bank’s recent investment insights series, was held in 16 cities across Europe, with more than 600 UHNW and HNW investors participating.

Cesar Perez, chief investment strategist for J.P. Morgan private bank in EMEA, said: "Investors believe equities will be the best performing asset class over the next twelve months. Historically equity markets have performed well in the early stages of rising rate environments, so we agree with investors and see potential for this asset class to outperform over the next year."

According to the bank, the remaining 24% of the participants were split between hedge funds (9%), commodities (6%), high yield (5%) and core fixed income (4%).

On the other hand, many investors think fixed income will not be able to deliver, with 19% of HNWIs believing all fixed income investments will produce negative returns.

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Furthermore, fewer HNWIs (16%) are worried about the breakup of the Eurozone compared to 36% this time last year. This is in stark contrast to the same time last year when sentiment towards the region was at much lower levels (below 30%) as investors saw the greatest opportunities in the US and emerging markets equities, the survey revealed.

However, the US is still thought to be a strong equity market to invest in next year (23%), too, particularly for UK investors (31%).

UHNW and HNW investors in Spain, the UK, France, and Switzerland were found to have the most optimistic outlook towards equity markets, with 70%, 57%, 48% and 47%, respectively.

During a breakfast briefing in London, Perez has also warned about emerging markets, saying they have been suffering from volatile markets dynamics, with many businesses exiting as uncertainty spread out. In addition, he showed a positive look towards Asia, especially Japan