UK – Global fund managers are bullish about equity trading worldwide, despite the slow down in the markets, according to a monthly survey carried out by Merrill Lynch.
Ninety per cent of the 269 fund managers polled believe that the markets will be higher or at least the same in a year’s time, with 20% saying the markets will be considerably higher.
David Bowers, global investment strategist at Merrill Lynch, says that the turnaround will be fuelled by corporate profit levels going up.
Other findings include increased optimism on inflation and differences of opinion on investment styles.
Higher inflation is now only predicted by 22% of institutional investors, as opposed to 38% last month, whilst 45% are opting for value stocks against 39% for growth funds.
General and basic industrials are tipped to do well whilst confidence in telecoms and utilities continues to be low.