More than half of institutional investors surveyed expect the market to hit bottom before the end of the year.
The survey of 120 institutional investors from 20 countries by TheMarkets.com, a research firm for brokers and institutional investors, also shows that institutional investors believe that financials, energy, health care and consumer sectors will be the focus in the economic recovery.
Thirteen percent of respondents expect the market to bottom before June 30, and another 41% expect the market bottom to occur in the second half.
An additional 39% see a bottom in 2010; the remainder expects a bottom sometime in 2011 of 2012.
Also, almost two out of three said the S&P 500 would return to 1,200 sometime in 2011 or 2012, while 19% see a return to 1,200 sometime next year.
Investors were most optimistic about the future of financials sector, with 60% saying it would be a key area of the recovery. Forty-five percent named energy, 42% health care, 33% consumer, 20% information technology, 17% basic materials, 13% industrials, 10% telecommunication and 6% transportation.