Institutional investors seem to be saying "anything but America,” according to the May 2002 Merrill Lynch Fund Managers survey.
In a survey of 293 fund managers worldwide, 22% think the United States had the most favorable corporate profit outlook, down from 42% three months ago; 63% think the U.S. equities market is most overvalued, while 38% think global emerging markets are the most undervalued. Also 43% say they would underweight the U.S. equity market over the next 12 months.
The most favored investment markets are global emerging markets; a net 38% of fund managers now overweight the region.
