Russell Investments recently released the results of its latest survey of investment managers and they are not as bullish as they used to be. Erik Ristuben, CIO of Russell Investments, explained the details of the report.
“The sentiment changed, but the market also went up,” Ristuben told CNBC.
“So I think they’ve been paid for the bullishness that they expressed at the end of the second quarter. Equities have gone up across the board, corporate bonds and high-yield bonds have rallied dramatically since March.”
Ristuben said the relative performance of corporate paper—both investment grade and high-yield bonds relative to Treasurys—has been “astounding” this year.
“Spreads have come in much faster than many predicted and there has been a lot of money that’s been made in those sectors of the marketplace."
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"I think managers are beginning to believe that the rally is getting long in the tooth and it certainly cannot continue at the rate that it’s gone so far, and it’s got to slow,” he said.
Managers are Bullish on:
Other Energy (ex. Integrated Oils)
Materials & Processing
Managers are Bearish on:
Consumer Discretionary & Services
No immediate information was available for Ristuben or his firm.
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