News: Market lags economic optimism.(institutional investors' attitude)

Pensions Week, September, 2002

A significant positive shift in institutional investors' attitude to the global economy has not prevented them from increasing cash balances in a flight to safety, claimed an investment house last week.

Nearly half (48%) of fund managers anticipate stronger economic growth in the coming year compared with just 43% last month, according to last week's Merrill Lynch monthly fund manager survey.

David Bowers, chief global economist at Merrills, said: "Fund managers are wondering if they've been too hasty in going negative on recovery. Institutional investors are not rushing to endorse a double dip scenario - at least not yet."

However, despite an upturn in market sentiment, institutional investors showed a significant rise in their aversion to...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.