Interesting results of Merrill’s Monthly Manager Survey: It seems that most managers are very upbeat about the economy and the state of corporate health:
• Cash balances plunge to 3.5%, lowest since July’07;
• Highest equity allocation (34% from 7%) since Oct’07;
• Bond allocation (-28% from -12%) lowest since April’07.
• Tech (28%) is the most favored sector everywhere;
• 75% believe the world economy will strengthen in the coming 12 months (highest reading since November 2003 and up from 63% in July).
• 70% of the panel respondents expect global corporate profits to rise in the coming year, up from 51% last month.
• Confidence about corporate health is at its highest since January 2004
While I keep hearing about cash on the sidelines,. the professionals seem to be “All In.”
Merrill Lynch Fund Manager Survey Finds Economic Optimism Highest Since 2003 as Investors Put Cash to Work
August 19, 2009