CNBC's Trillion Dollar Survey of top money managers and investment strategists finds expectations the stock market will continue to rally this year, the next interest rate move by the Federal Reserve will be a rate cut, and Democrats will capture the White House in 2008.
The nationwide survey of more than 60 strategists, money managers and investment advisers asked their opinions on topics including stocks, commodities, the credit markets, interest rates, the economy and the presidential election.
Among some of the results:
Stock Market: 80% of those surveyed see the Dow around 14,000 or higher at the end of the year. 72% see the S&P 500 around 1550 or higher at year end. In terms of geographic investment opportunities in 2007 - those surveyed are most bullish on the US market for 2007 - the US & Japan in 2008. Liquidity is the strongest factor influencing the stock market right now. Rising interest rates and Congress (Taxes, other legislation) are viewed as the two biggest threats to the stock market's rally.
Sector Strategy:Those surveyed are most bullish on the Energy & IT sectors for the balance of 2007 while IT is the clear choice for 2008. They are most bearish on Consumer Discretionary and Financials for the rest of 2007 and on Consumer Discretionary and Utilities for 2008.