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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Northern Trust Survey: Fed’s Potential Tapering Tempers Investment Managers’ Outlook

The possibility of a change in U.S. Federal Reserve monetary policy or its “quantitative easing” stimulus program poses the greatest risk to equity markets over the next six months, according to a quarterly survey of investment managers by Northern Trust.

The survey of approximately 100 investment managers was taken June 6-21, as the financial markets were reacting to comments by Federal Reserve Chairman Ben Bernanke and others regarding the future of Fed policy. A majority of respondents, 62 percent, said comments indicating the Fed would slow the pace of its bond purchases under the quantitative easing or QE program would lead to higher interest rates in the next three months. A change in Fed policy also displaced a European debt crisis as the greatest potential risk to equity markets in the next six months, according to a ranking by managers in the survey.

After two quarters of rising optimism on the U.S. economy, the survey found tempered enthusiasm on housing prices and jobs, although managers still hold positive views on the U.S. economy and stock market. For example, 76 percent of managers expect housing prices to rise in the next six months, but that figure is down from 88 percent in the first quarter survey. Meanwhile, 22 percent of respondents expect housing prices to remain stable, up from only 9 percent who held that view in the previous quarter.

On jobs, too, there was a shift in expectations from accelerating improvement to stable, slower growth. More than half (57 percent) of respondents expect stable job growth in the next six months, while those expecting accelerating job growth fell to 29 percent from 38 percent in the first quarter survey. However, the vast majority of managers, 87 percent, expect U.S. corporate profit growth to increase or remain the same in the next three month, down only slightly from the previous survey.

Stock quotes in this article: NTRS 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,501.65 0.00 0.00%
S&P 500 1,878.61 +3.22 0.17%
NASDAQ 4,148.3380 +21.3710 0.52%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs