Investors More Bearish, See Profits Falling
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Investors are returning to a bear-market state of mind as the forecast for economic growth and profit have hit a double dip, according to the latest fund survey from Bank of America-Merrill Lynch.
Released on Tuesday, the survey found that fund managers have turned bearish in their expectations for growth in the overall global economy and earning for corporations for the first time since since February 2009.
The survey showed that investors are more concerned about investing in the stock market now than any time since November 2006, which may be attributable to a recent streak of disappoint U.S. economic data raising concerns that the recovery from recession may be losing forward momentum.
"July's survey echoes the sentiment that investors expressed during the recession in early 2009," said Gary Baker, head of European Equities strategy at BofA Merrill Lynch Global Research.
The most recent survey showed that for the first time in over a year investors expect corporate profits to worsen.
"Growth and profit expectations have double-dipped. Should upcoming data fail to confirm a double-dip, risk assets will have a much better third quarter,” said Michael Hartnett, chief Global Equity strategist at Bank of America-Merrill Lynch Global Research.
The survey reiterates the idea that investors have become for adverse to risky trading.
Baker added that if the upcoming economic data proves that a double dip is not present, then the third quarter will see investors returning to the stock markets.
Released on Tuesday, the survey found that fund managers have turned bearish in their expectations for growth in the overall global economy and earning for corporations for the first time since since February 2009.
The survey showed that investors are more concerned about investing in the stock market now than any time since November 2006, which may be attributable to a recent streak of disappoint U.S. economic data raising concerns that the recovery from recession may be losing forward momentum.
"July's survey echoes the sentiment that investors expressed during the recession in early 2009," said Gary Baker, head of European Equities strategy at BofA Merrill Lynch Global Research.
The most recent survey showed that for the first time in over a year investors expect corporate profits to worsen.
"Growth and profit expectations have double-dipped. Should upcoming data fail to confirm a double-dip, risk assets will have a much better third quarter,” said Michael Hartnett, chief Global Equity strategist at Bank of America-Merrill Lynch Global Research.
The survey reiterates the idea that investors have become for adverse to risky trading.
Baker added that if the upcoming economic data proves that a double dip is not present, then the third quarter will see investors returning to the stock markets.
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