Hopeful investors look to emerging markets.

Investment Adviser, June, 2009

Byline: James Kenny

Merrill Lynch survey finds managers are 'rewriting the rules' on portfolio positioning

As the early signs of a recovery begin to take shape, optimistic investors are increasingly moving their portfolios into emerging markets, according to the latest Merrill Lynch fund manager survey.

June's survey of more than 220 managers found that, while many respondents believe a recovery is on the horizon, many others are now "rewriting the rules" for positioning their portfolios at the start of a new investment cycle.

At the beginning of a cycle, the report said, managers tend to move into more defensive cyclical stocks, such as consumer discretionary.

Yet many of the survey's respondents said they were now...

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