Institutional money managers used by manager of managers Northern Trust Global Advisors are cautiously optimistic about long-term investment.
“The broad consensus extends to a view that markets are undervalued,” Andrew Smith, CIO at Northern Trust Global Advisors, said in a news release. “Looking beyond short term, these experienced investors see potential beginning in U.S. equities emerging from a period of market turmoil and economic recession.”
More than two-thirds believe that the S&P 500 is undervalued, and 95% of the managers believe that corporate earnings will decrease over the next three months.
The survey of 60 managers of the 250 in the NTGA program showed that most (86%) expect housing prices to fall in the next six months, and 64% believe global inflation will decrease.
Money managers ranked U.S. large-cap and small-cap equity markets as their most attractive investment opportunities.
NTGA conducted the survey at the end of December.
