This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Northern Trust Survey: Managers Expect Continued Growth In U.S. Economy And Profits

Investment managers expect continued growth in the U.S. economy and corporate profits even as the Federal Reserve reduces its bond buying under the quantitative easing program (QE3), according to a quarterly survey conducted by Northern Trust. The survey of approximately 100 managers, taken December 3-18, also found that 69 percent expect interest rates will rise when the Fed begins its QE3 tapering.

“Optimism continues to rise among investment managers. On several key indicators, managers were more positive in our fourth quarter survey than they had been in the third quarter survey,” said Christopher Vella, Chief Investment Officer for Multi-Manager Solutions at Northern Trust. “Most managers expected the Fed would taper QE3 in the first quarter of 2014 and expect interest rates to rise as a result, yet they continue to be bullish on U.S. large-cap equities and have positive expectations on both profit and job growth.”

Fundamentals within the economy and corporations are seen by managers as steady to improving. For example, 95 percent of respondents expect job growth to be steady or increasing over the next six months, compared to 86 percent who held that view in the previous survey. On corporate profits, 64 percent of managers expect earnings to increase over the next three months, versus 49 percent with that view in the third quarter survey. Overall, 95 percent of respondents believe corporate earnings will be stable or increase.

Along with these positive views, 64 percent of investment managers believe market volatility as measured by the Chicago Board Options Exchange’s Volatility Index (VIX) will increase over the next six months. Also, 34 percent of managers became more risk-averse in their portfolios in the fourth quarter, compared to 20 percent in the third quarter. More than half report no change in risk aversion. The vast majority, 82 percent of managers, have maintained a “normal” cash level, in line with the previous quarter.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,144.58 +47.68 0.26%
S&P 500 2,102.18 +3.65 0.17%
NASDAQ 4,986.0420 +18.9010 0.38%

Partners Compare Online Brokers

Free Reports

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