Wall Street’s money pros are more bullish on the stock market now than they were before the plunge in August.
Last weekend, Barron’s magazine published the findings of its biannual “Big Money” investor survey. 55% of respondents said they were either “bullish” or “very bullish,” which is up from 45% who responded similarly for the Spring survey.
According to Barron’s, investors are betting that the drop was just a correction, and the bull market will be driven higher by gains in the US economy and corporate profits.
The survey was sent out mid-September and had responses from 138 money managers.
Based on the mean, the respondents forecast the Dow would rise 4% through the middle of next year from current levels, a gain to 17,965. They saw the S&P 500 up 6% from current levels by next June, to 2,147, and the Nasdaq up 7%.
Only 2% of respondents had a “very bearish” investment outlook, the same as those who were “very bullish”. The majority (53%) said they were “bullish”.
And in a simple thumbs-up-or-thumbs-down question, Apple, Amazon, Facebook, and Bank of America were among stocks approved of, while Netflix and Tesla weren’t favourites.
Money managers did not expect an interest rate hike to come soon or to halt the bull market when it eventually does. And most of them thought the Fed should have raised rates in September.
And as a quick footnote, some people view Barron’s cover as a contrarian indicator for the market.
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