Fund Manager Bullishness at Highest Level In Six Years

August 20, 2009 at 10:00 am  ·  Category: Sentiment Analysis

Merrill Lynch yesterday released their August Survey of Fund Managers titled “Merrill Lynch Fund Manager Survey Finds Economic Optimism Highest Since 2003 as Investors Put Cash to Work”.  Here are some highlights:

  • A net 75% of respondents believe the world economy will strengthen in the next 12 months – up from 63% in July and the highest reading since November 2003.
  • A net 70% of respondents expect global corporate profits to rise in the coming year – up from 51% in July and the highest reading since January 2004.
  • Average cash balances have fallen to 3.5% from 4.7% in July – their lowest level since July 2007.
  • A net 34% of respondents are overweight equities – up from 7% in July.

        (Via The Big Picture)

My, my how things have changed (for example, see “The Point Of Maximum Pessimism”, Top Gun FP, October 16, 2008).

Combine this data with the recent WSJ survey of economists that found 44 of 45 economists believe the recession is already over or will be over this year and you have a lot of people on one side of the market.

Should sentiment reverse, the rush for the exits could be something to behold…..

Posted by Greg Feirman  ·  Trackback URL  ·  Link
 

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