Investor optimism at six-year peak: Merrill Lynch survey
19 Aug 2009
Mumbai: Investor optimism about the global economy has soared to its highest level in nearly six years, with portfolio managers putting their cash back into equity markets, according to the Merrill Lynch Survey of Fund Managers for August.
A total of 204 fund managers, managing a total of $554 billion, participated in the global survey from 7 August to 12 August, 177 managers, managing $370 billion, participated in the regional surveys. The survey was conducted by Banc of America Securities - Merrill Lynch Research with the help of market research company TNS.
A net 75 per cent of survey respondents believe the world economy will strengthen in the coming 12 months, the highest reading since November 2003 and up from 63 per cent in July.
The survey revealed that confidence about corporate health is at its highest since January 2004. A net 70 per cent of the panel respondents expect global corporate profits to rise in the coming year, up from 51 per cent last month.
August's survey shows that investors are matching their sentiment with action, by putting cash to work.
Average cash balances have fallen to 3.5 per cent from 4.7 per cent in July, their lowest level since July 2007.