WCA January 2010

A net 39 per cent of money managers surveyed said they expected profits to rise by at least 10 per cent over twelve months, up from the 25 per cent who were of that view in September. Writing in MarketWatch (San Francisco), Barbara Kollmeyer pointed out “one big shift” in the survey findings: more money going into European equities. A net 30 per cent of global portfolio managers now see euro-zone equities as undervalued relative to other regions – the highest reading since April 2001. As for emerging markets, confidence in the prospects for the Chinese economy and emerging markets in general remains strong. A net 49 per cent of the October respondents said they thought China’s economy would strengthen in the year through October 2010, up from 35 per cent holding this view a month earlier. A net 36 per cent of the respondents also said they would tend to favour emerging markets over the course of the year ahead. The survey was conducted by BofA Merrill Lynch Global Research with the help of British-based TNS, which provides market information services in over 80 countries. In a persuasive sign of the renewed confidence of ❖ ❖ US-based investors, on 15 th October the Rasmussen Investor Index jumped to its highest level since the

The recovery

With new confidence in the world economy, investors look toward Europe and China

According to a global survey of 229 fund managers conducted by Bank of America Merrill Lynch (Charlotte, North Carolina) during the week commencing 2 nd October, most investors are optimistic on the world economy and no longer fear a double-dip recession. Those surveyed manage a total of $616 billion. A net 65 per cent of respondents reported believing that a global recession is unlikely in the ensuing twelve months, up from 47 per cent a month earlier. A net 72 per cent of respondents believe the outlook for corporate profits will improve over that period, up from 68 per cent a month earlier. Reflecting that optimism, the survey found the managers’ appetite for risk at its highest in three years. Shifting more money out of cash and into equities, asset allocators pushed their cash positions to the lowest levels since January 2004.

26

Wire & Cable ASIA – January/February 2010