A majority of managers expect markets to rise in 2009, according to Russell Investment’s Investment Manager Outlook survey in the fourth quarter.Of the 206 managers who responded, 50% said they expected markets to rise at least 10% over current valuations, 27% said they expected markets to rise 1% to 9%; and 23% said they didn’t expect markets to increase in 2009.
Also, 72% believe the market is now undervalued, up from 45% in the survey taken in September.
“Managers believe that the market has overshot the damage done by the ongoing recession and is now oversold and undervalued,” said Erik Ristuben, CIO, North America, in a news release. “In their opinion, this market has been driven by panic and fear as much as by economic fundamentals.”
Managers were bullish in eight of the survey’s 13 asset classes, with record levels for corporate bonds (60%), U.S. small-cap value (54%), U.S. midcap value (53%) and high-yield bonds (53%). The only asset classes where managers were bearish were non-U.S. developed market equities, cash, U.S. Treasuries and real estate.
The survey was conducted Nov. 14-21.