ENGLEWOOD CLIFFS, N.J., January 22, 2008-America's top investment strategists and fund managers say the Fed did the right thing by cutting rates this morning, according to CNBC's exclusive Trillion Dollar Survey released today.
In the survey, 74% said they believe the Fed did the right thing this morning by cutting the Fed Funds rate by three-quarters of a point, 10% said they should have cut more, 8% said the Fed should have cut less and 8% believed the Fed should not have cut rates at all.
Also, nearly all those surveyed believed the Fed will cut rates further over the next six months. Of those surveyed, 24% believe the Fed Funds rate will be 3.00% in six months, 30% believe the rate will be 2.75% and 27% said the Fed Fund rates will be 2.50% in six months.
According to the survey, 54% believe there's a 50% chance of a recession in 2008 while 20% say the probability of a recession in 2008 is 75% and 9% of those surveyed believe there's a 100% chance of a recession in 2008. The Pros' recession expectations have risen since CNBC's last survey three weeks ago.
The nation's top money managers, investment strategists and professional economists overwhelmingly expect stocks to eventually rebound with 97% saying the current stock market weakness will prove to be a buying opportunity over the period of a year or more.
But, when asked how the S&P will finish for the 2008, 20% believe it will be unchanged, 14% believe it will finish up more than 10% and very few respondents believe the S&P will finish down in 2008.
The nationwide survey of almost 40 of the nation's top money managers, investment strategists and professional economists asked their opinions on the recent Fed rate cut, the current stock market weakness, the S&P outlook for 2008 and the probability of a U.S. recession in 2008. The results were reported today on "Street Signs" (2PM-3PM ET) by CNBC's Michelle Caruso-Cabrera on CNBC, First in Business Worldwide.
For more details regarding CNBC's exclusive Trillion Dollar Survey log onto CNBC.com.
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