The latest Russell Investment Management survey is out and it shows that the lion's share of money managers are bullish for the new year.
Randy Lert is chief portfolio strategist for Russell Investment Group. He was on "Morning Call" to discuss the survey results with Michelle Caruso-Cabrera.
Of the 85 investment managers Russell surveyed - 85% of them expected the market to rise in '07. And 31% believe it will rise by 10%.
For the last 2 years, the survey painted investors as "cautiously bullish," according to Lert. But with the market showing such strength these last few months, that guarded optimism may turn into an all-out bull run:
"A little momentum always helps people generate conviction in their beliefs," says Lert.
The most attractive sectors for money managers going into '07: technology, healthcare and financial services. And the least attractive? Real estate and corporate and high-yield bonds.
The survey also shows more interest in investments overseas - both in emerging markets and non-U.S. developed markets. Lert says a reason for this is the weakness in the U.S. dollar. With a global economy in relatively good shape, the drop in the value of the dollar accelerates returns for overseas investments.
Lert says the survey isn't necessarily a bellwether for the coming year - but generally reflects investment managers' preference for stocks over bonds. But if the survey is any indicator - money managers could be in for another very good year.