This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Northern Trust Survey: Housing Rebound Leads Positive Economic Indicators For Investment Managers

Institutional investment managers anticipate a rebound in the housing market and see less downside risk for U.S. economic growth over the next six months, despite a mixed outlook on corporate earnings and concerns regarding a potential “fiscal cliff” in the U.S. and the ongoing financial crisis in Europe, according to a quarterly survey by Northern Trust.

Investment managers surveyed in mid-September also expect the U.S. presidential election will have little effect on the markets: 52 percent predict a neutral impact, 28 percent expect a positive impact and 19 anticipate a negative impact from the election. Most (62 percent) said their response was not dependent on which party wins the election.

“Manager sentiment regarding the U.S. economy seems to have rebounded in the third quarter after dipping at mid-year,” said Chris Vella, Chief Investment Officer for Northern Trust Multi-Manager Investments. “Expectations for a rebound in housing, stable or increased job growth and a positive impact from the Federal Reserve’s third round of quantitative easing appear to have overcome – for now – the global and macroeconomic issues that weigh on investors’ minds. And managers indicate the U.S. election will provide clarity to the markets, regardless of the outcome.”

The survey of approximately 100 institutional managers, conducted in mid-September by Northern Trust Multi-Manager Investments, showed a meaningful increase in positive expectations for the U.S. housing market. A large majority (69 percent) of managers expect U.S. housing prices to increase over the next six months, up from 33 percent in the second quarter of 2012.

Managers also see less downside risk in U.S. economic growth. In the third quarter, 87 percent of respondents said GDP growth would remain stable or accelerate, up significantly from 70 percent in the second quarter. The outlook for job growth improved, with 57 percent expecting job growth to remain stable and another 25 percent anticipating a pick-up in growth over the next six months. Eighteen percent said job growth would decelerate, down from 40 percent who held that view in the second quarter survey.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%
YHOO $27.97 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs