UK - Over 90% of fund managers are bullish about the prospects for US equities, research from Russell Investment Group shows.
The consultant surveyed 107 investment managers for its Investment Manager Outlook survey and found that 63% thought US equity markets were priced at “fair” value.
Additionally, 28% thought the asset class was undervalued despite fears about rising interest rates, oil prices and events in the Middle East. Only 9% were downbeat about the outlook for US equities.
For specific asset classes, the firm found that 71% of asset managers were upbeat about large-cap growth stocks, while just under 60% were positive about large-cap value equities.
However, the one area of disagreement was the prospects for small-cap value stocks. Russell found that 42% of managers were bullish, 30% were neutral and the remainder were pessimistic.
Russell chief portfolio strategist Randy Lert said: “The results of Russell’s first Investment Manager Outlook are a good indication that the last market cycle of the 20th century has finally ended.
“After the wild and painful cycle that began with a bubble in 1998, then led to an excessive correction through the spring of 2003, followed by a rally through the end of last year, we finally seem to have begun a new investing environment. From the perspective of professional investors, the 21st century has finally arrived.”
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