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| Investor optimism surges to 6-yr high |
| Press Trust of India / New York Aug 20, 2009, 16:53 IST |
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Investor optimism about the global economy has soared to its highest level in nearly six years, with fund managers across the world putting their cash back into equity markets, a Merrill Lynch survey said.
A net 75 per cent of the fund managers surveyed in August across the globe believe the world economy would strengthen in the coming 12 months — the highest reading since November 2003.
The reading has significantly increased from 63 per cent in July, the report said.
Moreover, confidence about corporate health is at its highest since January 2004, and 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.
The August survey revealed that investors were matching their sentiment with action, by investing in equity market. The average cash balances have fallen to 3.5 per cent from 4.7 per cent in July, their lowest level since July 2007.
Further, equity allocations have risen sharply month-over-month and Merrill Lynch's Risk and Liquidity Indicator, which measures risk appetites, has also risen to a two-year high of 41.
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